If an individual is insolvent and unable to meet his / her financial obligations, the individual or one of his creditors may apply to the court for a sequestration order to be granted against the individual.

This means that the individual’s assets will be placed under control of a trustee who will consult with the individual’s creditors and convert his / her assets into cash for distribution to the creditors.

During the period of sequestration, the individual has no legal capacity. The trustee is empowered during this time to take a portion of the individual’s earning to pay his creditors.

A seqeustration order is effective for 10 years, after which the individual is automatically rehabilitated. The individual may however apply to the court for rehabilitation within that period.

We advise you to be very cautious and to consult us prior to applying for sequestration as the negative effects of such an order will be felt by you for many years after.