Under the Companies Act 71 of 2008, a South African director has a legally enforceable duty to act the moment their company shows signs of financial distress. Financial distress is defined as being unable to pay debts within the next six months or likely to become insolvent within six months. Ignoring this duty can result […]
South Africa’s insolvency landscape shifted significantly on 21 February 2024, when the country launched its first-ever Dedicated Insolvency Court within the Gauteng Division of the High Court in Johannesburg. This represents a structural change that affects how quickly insolvency matters are resolved, how strictly compliance is enforced, and how much time distressed companies have to […]
When debt becomes unmanageable, two legal options are available to South Africans seeking relief: debt review and sequestration. Both provide protection from creditors and a path out of financial distress, but they work in fundamentally different ways and suit different circumstances. Debt review restructures what you owe to be paid off over a prolonged period […]
For many South Africans, financial hardship can lead to insolvency or sequestration. While this legal process can provide much-needed relief from overwhelming debt, it also raises an important question: how will this affect my credit record, and for how long? Understanding the connection between insolvency and your credit record is critical for making informed financial […]
Insolvency is a word no one wants to hear – but if you’re facing mounting debts, struggling to pay your bills or watching your business’s finances spiral, it’s important to take corrective steps as soon as possible. Knowing how insolvency works can help you protect your interests, make informed decisions and take the first steps […]
