WHAT IS REHABILITATION AND WHEN CAN I APPLY FOR REHABILITATION?
When you are sequestrated from the day after of the court order you start your estate from new.
Any debts prior to sequestration is then written off and you start a new page in your life
The issues are that you can’t have a cheque account/credit card/home loan/motor finance or cannot be a director of a company or be a trustee in a trust.
To enable you to have a normal financial estate you need to rehabilitate.
There are certain time lines in the rehabilitation process and as follows:
1. 6 months after sequestration
In terms of Section 124(3) of the Insolvency Act –
• You have been sequestrated for the first time
• The first meeting of creditors has been convened by the Master of the High Court
• No claims have been proven against your estate
• You have not been convicted of any offence
2. 12 months after sequestration
In terms of Section 124(2)(a) of the Insolvency Act –
• You have been sequestrated for the first time
• Claims have been proven in your estate
• 12 months have lapsed from date of confirmation of the trustee’s first liquidation and distribution account
• You have not been convicted of any offence
• Four years have expired from date of sequestration, except upon recommendation of the Master
3. 3 Years after sequestration
In terms of Section 124(2)(b) of the Insolvency Act –
• You have been sequestrated previously
• Three years have lapsed from date of confirmation of the trustee’s first liquidation and distribution account
• You have not been convicted of any offence
• Four years have expired from date of sequestration, except upon recommendation of the Master
4. 5 years after sequestration
In terms of Section 124(2)(c) of the Insolvency Act –
• You have been convicted of any offence
• Such an applicant may only apply for rehabilitation after five years have elapsed from date of conviction
5. 10 years after sequestration
In terms of Section 127A(1) of the Insolvency Act –
• You are deemed to be rehabilitated and no court application is necessary