More about Insolvency Law and our mission to your solution:
Voluntary surrender of estate (Voluntary sequestration)
Voluntary sequestration is an application which is brought to the High Court to surrender your estate to creditors in the hands of the Master of the High Court and be declared insolvent. This is the case when an individual is unable to repay all his or herdebt to creditors.
The Master will then appoint a Trustee to take control over the administration of the estate. He will then pay the creditors a dividend from the estate.
Our office provide for payment plans in order to accumulate the contribution amount needed for the contribution towards creditors, and although in some cases the assets of the applicant is sold, a compromise can be entered into between the applicant and the trustee to avoid the loss of assets.
The effect of a Voluntary Sequestration Court Order is that creditors must claim from the separate insolvent estate. Creditors can not claim any more payments from the applicant as all legal action against the individual is stayed. The trustee takes control of the entire estate and executes the administrative tasks.
Rehabilitation
Rehabilitation is an application brought by an Insolvent (previously sequestrated) to be declared solvent again, thus rehabilitated. The effect is that of bringing an end to your sequestration and discharging all your debts which were due, or cause of which had arisen before the sequestration.
This application is therefore brought after the sequestration and after the Trustee finalised the administration thereof. After the rehabilitation application is granted, the Applicant will regain control over his estate and be able to deal accordingly.
The time frame as to when an application for the rehabilitation after sequestration, can be brought differ in accordance to the circumstances of the sequestration.
These circumstances include:
- Whether claims have been proven by creditors against the estate
- Whether the applicant was previously sequestrated
- Whether all creditors was paid who proved a claim
- Whether a criminal offence was committed by the applicant with regard to his estate
These circumstances must be evaluated on an ad hoc basis by our office. We will communicate with the appointed trustee and advise each client as to his or her options and what the suspected waiting period will be.
Liquidation
Liquidation is the process by which an entity closesdown as it is no longer solvent. Thus, the legal entity’s total outstanding liabilities are more than its total assets and the income available is not sufficient to compile a reasonable debt rearrangement payment plan to the creditors.
The liquidation process is a legal process whereby the company and its affairs are placed under control of a liquidator, who must realize the assets and divide them amongst the creditors fairly as stipulated in the Companies Act. The liquidator must make sure that the company is dissolved in an orderly manner.
Liquidation is a fairly simple process; however, every liquidation process is different because the outcomes desired are specific to our clients.
When it is foreseeable that your company or close corporation will not be able to pay its creditors as they fall due in the ensuing 6 months, there is a legal obligation on you to liquidate the company.
The liquidation process can take anything between 2 to 6 weeks to finalize.
Family law:
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Insurance Law
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- Life insurance repudiation claims