One question comes up in just about every conversation about sequestration: Will I lose my house? The honest answer is uncomfortable, and understanding it is the first step to protecting yourself. Unfortunately, your primary residence in sequestration enjoys far less protection than most people assume. The Short Answer Yes, it is highly likely. Under South […]
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 […]
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 […]
When an individual faces the overwhelming pressure of mounting debt, the impulse to “hide” certain assets from the reach of creditors could arise. This could involve selling a vehicle to a relative or transferring property into a trust. However, it’s important to be aware that such actions taken in the months or even years leading […]
Sequestration can feel overwhelming, especially when you share a home, vehicles, or other assets with your spouse. Many people worry about what will happen to jointly owned property during sequestration, and whether their partner’s estate will also be affected. The outcome depends heavily on the matrimonial property regime and the rules set out in the […]
If you’ve been through sequestration or liquidation, you may be wondering whether you can start afresh in the business world, especially in a leadership role. Can you register a new company? Are you allowed to serve as a director? In South Africa, both sequestration (for individuals) and liquidation (for companies) carry serious consequences, but they […]
Sequestration offers individuals overwhelmed by debt a chance to start over financially. However, it comes at a cost: your estate is surrendered to a court-appointed trustee. Understanding what assets can be seized during sequestration is essential if you’re considering this route or facing compulsory sequestration. What Is Sequestration? Sequestration refers to the legal process by […]
