Personal liquidation, a phrase that can also be defined as sequestration, is an effectual solution available to South African citizens who are unable to pay off their existing debts, or whose financial liabilities exceed the value of their assets. At Credit Rehab, we deliver dedicated financial and legal services that aid struggling consumers on the path to attaining a better financial status.
The first step to overcoming debt free is to regain financial control. A viable solution to regaining control and paying back or writing off as much debt as possible is sequestration or Personal Liquidation, which refers to the voluntary surrender of one’s personal estate. Personal Liquidation is suited to cases where you as the consumer are faced with debts that exceed your assets, making it possible for you to be declared insolvent.
Our Credit Rehab team of financial and experts and attorneys will step in to present your case to the court for the most favourable outcome of court approval. We will provide the necessary paperwork and affidavit of your insolvency in order to get the process started. Although Personal Liquidation can be a difficult process, the end result is that you will be free of debt and can enjoy your salary without unrealistic monthly financial expectations weighing you down.
There are certain prerequisites in place to be granted legal sequestration. Firstly, this needs to be beneficial to your creditors, meaning that the sale of your assets needs to result in sufficient funds to be distributed amongst all your current creditors, who should receive 20c out of the rand from whatever sales your estate generated. Your assets sold also need to cover the cost (legal fees, trustee fees and court applications) of your Personal Liquidation or Voluntary Sequestration. Remain aware that through successful liquidation, debts could be up to 80% could be written off; however you still need an income so that you are able to pay back the remaining debt, which will be much lower and likely without interest. Your salary and pension are safe during the Personal Liquidation process.
When seeking out Personal Liquidation services that are result driven and tailored to your best interest wherever possible, our Credit Rehab team are specialists and can assist you every step of the way. Once the High Court has granted approval and the liquidation of your personal assets commences, a court appointed curator of your estate will then manage the sale of your assets (which include paid up vehicles, immovable property and any valuables that form part of your current estate). As a consumer considering Personal Liquation, it is important to note that if you are married in community of property, the joint estate of you and your spouse will be sequestrated.
If your liabilities exceed your assets and you are ready to get your debt related issues under control, the benefits of Personal Liquidation are well worth it and can rid you of plenty financial stresses, as well as the uneasiness resulting from constantly being harassed by creditors, who will no longer be in direct contact with you. After this sequestration process, our Credit Rehab Team can also assist you in applying for a Rehabilitation order, resulting in you once again being considered credit worthy.
Contact our Credit Rehab team today for reliable and dedicated financial and debt solutions that include Personal Liquidation and Voluntary Sequestration.