Rehabilitation
To enable you to have a normal financial estate after a sequestration, you will need to rehabilitate
Rehabilitation
When you are sequestrated, from the day after the Court Order is granted, you start your estate anew.
Any debts that existed prior to sequestration, are written off and you start a new page in your life.
The issues that may arise, are that you are prohibited from having a cheque account or credit card, obtaining a home loan or vehicle finance, cannot be a Director of a company or be a Trustee in a trust.
Benefits of Rehabilitating
You will be able to:
- open new accounts
- do estate planning
- own a business
- to be a Trustee of a trust
The Insolvency Act allows you to apply for Rehabilitation if after:
6 months after sequestration
In terms of Section 124(3) of the Insolvency Act –
• You have been sequestrated for the first time
• The first meeting of creditors has been convened by the Master of the High Court
• No claims have been proven against your estate
• You have not been convicted of any offence
12 months after sequestration
In terms of Section 124(2)(a) of the Insolvency Act –
• You have been sequestrated for the first time
• Claims have been proven in your estate
• 12 months have lapsed from date of confirmation of the Trustee’s first liquidation and distribution account
• You have not been convicted of any offence
3 Years after sequestration
In terms of Section 124(2)(b) of the Insolvency Act –
• You have been sequestrated previously
• Three years have lapsed from date of confirmation of the Trustee’s first liquidation and distribution account
• You have not been convicted of any offence
5 years after sequestration
In terms of Section 124(2)(c) of the Insolvency Act –
• You have been convicted of an offence
• Such an applicant may only apply for rehabilitation after five years have elapsed from date of conviction
10 years after sequestration
In terms of Section 127A(1) of the Insolvency Act –
• You are deemed to be rehabilitated and no court application is necessary
