Will I lose my house?
The bank is going to start legal action against me soon becase my bond is in arrears
My car is on HP at the bank?
My car is paid up and registered in my name?
My parents (brother, sister, friend) bought my car and the finance is on their name?
Can they take my Pension policy held by my employer?
I have ceded my policy to a creditor?
I have a retirement annuity with a large insurance company?
I have a claim against someone for a personal injury and expecting it to pay out soon?
I have a Unit Trust account of approximately R500K?
Can I be too poor to sequestrate?
What is this ‘advantage’ or ‘contribution’?
Can someone take my salary?
Will I lose my furniture?
worst case scenario is that your furniture is appraised, and you have to buy back your furniture from your Insolvent Estate.
What will happen to my cell, printer and any other rental contracts?
Should I still pay maintenance to my ex-wife/husband?
What about my Parking tickets, Television licenses or speeding fines?
May I apply for sequestration while I am registered for Debt Review / Counseling?
Will I be able to open a bank account after my sequestration?
Can my employer fire me because I am declared insolvent?
regards to your employment, you can only be fired, if there is a condition in your Letter of Appointment that you are not allowed to be an insolvent while in the employ of your employer.
Should I keep on paying my creditors after I have decided to sequestrate?
Should I keep on paying my creditors after I have decided to sequestrate? What do I say at SARS?
I will wait for my creditors to sequestrate me.
Answer – A creditor is 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.
Statement – My friend in HR said she/he will not sign the garnishee on my salary
Answer – A garnishee is a court order against the Employer. The Creditor can hold the Employer liable for balance on the garnishee and take legal steps against the Employer. This means you and your friend can lose your jobs when the boss finds out.
Statement – I can go to court myself to sequestrate. I don’t need an attorney.
Answer – Not likely! A sequestration order can only be brought before a High Court. Only an Advocate can appear in a High Court. There are other legal processes that also deal with debt and all require some form of representation.
Statement – I will stop paying my debt and the creditors can’t do anything.
Answer – This is very dangerous. The risk here is a garnishee on the individual’s salary. Once a garnishee is signed on a salary then the NCA does not apply.
I have seen garnishee’s for 3 times the original outstanding balance amount and fees are still added monthly. There is no recourse to stop this garnishee, other than sequestration, or to curtail the monthly expenses.
Statement – Debt Review / Counseling will cost me less a month.
Answer – Possibly yes because the debt is being repaid over a longer period. Sequestration is limited to a legal process and has a time limit. However in a sequestration the balance of debt is written off and not repaid in full.
In the short term the monthly payment may be less but over the duration the repayment is considerably more.