Sequestration in the Free State is a Voluntary Debt Solution that can help you to write off unsecured debt that would otherwise take many years to settle. Our Insolvency Practitioners will issue a legal notice to all of your Credit Providers informing them that you are proceeding with Sequestration. Once they receive this notice they are unable to pursue you or take any legal action against you to recover any debt that is still owed.
On average 60% of your debt is written off in Free State. i.e. for every R100,000 you owe only R40,000 is paid back. Payment can occur over a negotiated term over a period not longer than 24 months. This amount can also be settled in one lump sum using funds from retrenchment/ pension payouts or a loan from friends or family can also be used to pay this amount in full. In some cases an even higher percentage can be written off. i.e. where assets have been repossessed and a shortfall exists after the sale of that asset.
There are a number of ways to pay this fee off in Free State.
1. CASH
You can do this by paying the full cash amount or installments over a negotiated period. If you are able to pay the full fee, sequestration will begin immediately. If you are paying off the fee, sequestration can only begin once the fee is paid in full.
2. ASSETS
As an alternative to paying cash, you can use paid off assets to stand as security for the fee. The assets remain in your possession. You can then pay off the fee over 24 months. Once the fee is paid off, the assets are released as security. Sequestration occurs immediately with this option.
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your debt exceeds R200,000.00
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you are unable to pay your debts when they are due.
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your debt has been handed over to collection agencies.
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you have shortfalls on assets such as vehicles and a home that has already been repossessed.
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You have tried Debt Review but the installment is still not low enough or you have been terminated from the process.
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You have judgements and emolument attachments on your income.
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Shortfalls from assets that have been repossessed.
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Financed Vehicles must be handed back to the bank.
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Paid off vehicles do not form part of the process and can be kept.
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Any Credit obtained from NCR Registered Credit Providers.
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Personal, Revolving and Payday Loans
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Overdrafts
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Credit Cards & Store Cards
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SARS Penalties
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Cell phone Contracts
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Medical Debt
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Other third-party Contracts.
The Sequestration process involves a Court Application to the High Court In Bloemfontein. An assessment will be done to determine how much you will be paying back. If you proceed there is legal documentation that will be drafted by our advocate. Credit Providers will be notified of the application. You do not have to appear in court. Once the Sequestration Order is granted Credit Providers will receive a copy of the Court Order. By law they can no longer request money from you. After 36-48 months. months you can apply for Credit Rehabilitation which will make you credit worthy again.
While the advantages of Sequestration are significant, their are some disadvantages. The one that has the most impact is the fact that an individual cannot apply for credit until Credit Rehabilitation occurs i.e. 36-48 months. But when you think about it you are probably not credit worthy anyway. If you continue as you are, paying for debt that is incurring interest and legal fees, you will probably not be credit worthy for many more years. Sequestration stops interest charges, writes off debt. and gives you a much faster opportunity of becoming credit worthy again.
