Rid yourself of up to 80% of your debt
Judgments and garnishee orders ceased
Protect your future income
Freedom through surrender
Half of the working population in South Africa works to service debt. Before they can realize it, their debt spirals out of control.
Previously financially sound families find themselves trapped by their financial commitments. They are unable to invest or save to improve their financial position as long as they have this debt burden.
It starts with signing an agreement based on their current financial situation. As time moves on, circumstances change and they may experience a reduction in salary or commission cuts. One partner may even lose an income due to retrenchment, or the family has to rely on credit to keep up with school fees. The cost of debt could change and living expenses increase.
All these situations can happen at any time, but without savings it's difficult to keep on track. When expenses are more than the income, people get forced to supplement income with more debt.
It's at this point the "bubble bursts" and they realize that it is just not physically or mentally possible to keep up with the pressure. A negative balance every month digs a deeper hole that is difficult to climb out of.
It's unjust to put a debtor in a worse financial position when he or she already has a shortfall in income.
It's like taking advantage of a vulnerable person. This is unconstitutional.
There is a way to escape insurmountable debt and protect those most vulnerable from becoming destitute.
It's called voluntary surrender or sequestration. The debtor is
relieved from the obligation to pay his or her creditors under the insolvency act. By voluntary surrendering to the estate to the master of the high court, the debtor will rid up to 80% of the debt. The balance gets paid over 18 to 24 months interest free.
The debtor has an assessment to determine if he or she is insolvent and will receive a quotation.
2. Advert in Government Gazette
Once the quote is accepted the debt’s advocate places an advert in the government gazette. The debtor is now the insolvent and protected by the insolvency act. He or she will stop making payment to all creditors accept garnishee orders.
3. Statement of affairs
5. Repayment terms
4. Appearance in court
1. Pay back 20-25c for every rand of debt
1. You rid yourself of up to 80% of your debt. This is paid over 24 months interest free.
2. Judgments are included in the process
Judgment orders cease when your sequestration order is granted.
3. Remove garnishee orders from your income
Garnishee orders will cease when your employer receives your sequestration order. Your income is protected from future garnishee orders while under the process.
4. Have your debt review order ceased
This is a solution for clients that want to stop debt review and rather start over through the voluntary surrender process.
5. Prevent a property auction
A sequestration order can stop your bank from auctioning your property. If you include the property in the sequestration, the curator will work to sell the property at a better value than an auction. This is in your best interest because if there is more profit it will help settle your debts so you pay less.
6. Deal with a Curator
This will save yourself the harassment from creditors and make the process hassle free.
7. Positive cash flow
With your debt out the way you will see more of your salary every month. This will have a positive effect on your cash flow and well being.
No Credit facilities
You wont be able to make further credit until you have been rehabilitated. This is actually a blessing in disguise because it will give you the opportunity to learn to live without credit. Remember you will have extra income every month from not paying your debt.
Married in community of property
If you are married in community of property, both spouses must follow the process.
Assets included in the process
You wont be able to retain your property or vehicle. In some cases the insolvent has the opportunity to buy the assets back from the curator but it’s not guaranteed.