Make an appointment with us. During the consultation, we will assist you in determining whether sequestration is indeed the right option. Should you want to proceed with sequestration, there are a lot of legal formalities of which we take care. From the date of the decision to sequestrate it normally takes about seven weeks before we appear in Court. You don’t have to appear in person, we appear on your behalf. During the process, you are protected against execution by your creditors unless you have left it so late that we can’t timorously place the prescribed publications in the Government Gazette which would stop execution by your creditors.
Yes indeed. There must be a “benefit” for creditor before the court will grant a sequestration order.
Should we try to explain this concept thoroughly it will take a lecture of many hours. For your benefit we will give you the very short version. In terms of the Insolvency Act it must be “to the benefit” of your creditors if you sequestrate. In layman’s terms this means that you have to prove to the Court that your creditors are, for as long as you are not sequestrated, prejudiced. We as Insolvency Law practitioners experience some frustration with the inconsistency amongst certain Courts and judges. Traditionally judges required that concurrent creditors should, in the winding up of the estate; receive at least ten cents in the rand. The preferred creditors must be paid in full, limited to the value of their security.
We have dealt with about 2300 insolvency cases. Thus far only 5 of these Applications did not succeed. We can’t pretend that we will always succeed, but on a balance of probabilities, we have succeeded in passing 99.85 of all applications that we handled.
Creditors are not keen to bring a “hostile” Sequestration Application, because it is normally cheaper for them to follow execution steps via the Sheriff. Hostile sequestration Applications are normally brought against debtors who have very large estates and have hidden their assets from creditors. Such a creditor would most properly hold an insolvency inquiry against such a debtor. And insolvency inquiry is a process in the insolvency law by which the insolvent, his family, auditor, employees, auditors etc. can be in interrogated to get information regarding the assets and other relevant affairs pertaining to the insolvent estate.