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Becoming ill or disabled can reduce your income and make existing debt difficult to manage. Before making permanent financial decisions, check your sick leave, UIF benefits, credit life insurance, disability cover and other financial relief that may already be available.

Sequestration does not automatically mean that your salary is attached or taken by the trustee. You can continue earning an income and supporting your household, while qualifying debts are dealt with through the insolvent estate. However, sequestration has legal and administrative costs that must be funded. Understanding what happens to your salary, pension benefits, RAF compensation and inheritance can help you make an informed decision before proceeding.

Understanding the tax implications during sequestration in South Africa is an important part of the insolvency process. Sequestration affects more than your assets and debts — it also changes how the South African Revenue Service (SARS) administers your tax affairs. This includes your tax status, outstanding tax debt, income tax and, in certain circumstances, Capital Gains Tax (CGT). Here is what you need to know.

Worried about losing your house or car during sequestration? We explain what happens to financed assets, outstanding balances and shortfalls, and how these assets can form part of resolving your debt.

Many South Africans who struggle with overwhelming debt often wonder if they should choose sequestration over debt review. Both processes offer legal protection, but they serve very different financial realities. If you face severe financial distress and see no realistic way to repay what you owe, sequestration may offer a more decisive and practical solution than debt review. Let’s understand why sequestration can be a better option than debt review in South Africa.