subject: Sequestration with property - Surrendering of your estate [print this page] Sequestration with property - Surrendering of your estate
Surrender enables you to normalize your financial matters. You will have no more fears that creditors will phone you day and night from "private numbers" and you can answer your calls fearlessly. No more fear that the sheriff may make an unannounced house-call.
Herewith a short summary of the procedure:
We publish an advert in the Government Gazette and the Citizen. This avert stops any legal procedures against you i.e. execution notices, seizure on your movable and/or immovable property, etc.
An ability statement is drafted that you will have to sign before a Commissioner of Oaths. This document is submitted for inspection at the Master of the High Court for 14 days or with the local Magistrate.
Thereafter a registered letter is forwarded to all your creditors as notice of the surrendering of your estate. Your creditors thus contact me for information. You will also be provided with the same notice to enable you to forward it through to nagging creditors.
The South African Revenue Services are also notified, even if you are not registered with SARS.
At the day of the Court proceedings an Advocate will represent you on your behalf, you will not attend the hearing yourself.
After the application has been approved and granted by the Court, a curator is appointed to handle all financial matters on your behalf. The curator will contact you to arrange a consultation to explain the details to you. If you reside outside the Pretoria or Johannesburg areas a telephonic consultation will suffice.
Immovable Property (should u have a Bond)
In the instance that your property has already been scheduled for auction, is it very important to proceed with the application for sequestration soonest. As soon as the notice is published, all legal action will cease.
A valuation will be done on the property. Documentation will be forwarded to you to complete before the valuation will commence. NB!! All improvements and fixtures must be stated.
The curator appointed by the Master of the High Court normally attempt to sell the property offhand i.e., an agent is appointed to try to sell the property. The agents will contact you to make an appointment to market the property. The agents used by the curator are very professional and will be take your needs into consideration.
You may still be able to occupy the property until the curator is appointed after your sequestration. As soon as the curator has been appointed, they will convert with you in terms of the procedure herein. You must keep paying municipality bills to avoid a "blackout". A copy of the last municipal rates and taxes must be brought with you to lodge the application.
The curator will give you thirty (30) days to vacate the property after date of a successful sale. It will not be advisable to vacate the property before then as a property sells best, when occupied. This will minimize vandalism and unnecessary costs to the insolvent estate to appoint guards on the property.
Should the property be sold for less than the bond amount, you will not be held responsible for the difference. E.G. if the bond was R1million and the property is sold for R800 000.00 the difference will be written off. Remember you are declared insolvent and will not be liable for the losses.
Another aspect is that you will not have to deal with the purchasers. All aspects such as bond approval, credit worthiness etc. is handled by the curator.
What happens to your Vehicle?
If your vehicle is under hire purchase, the Rules of Court stipulate that any bank may repossess the vehicle. Court Rules determine that hire purchase falls within the Law of Insolvency and the vehicle's payments must be made timorous and should be up to date. Should the instalments on the vehicle be up to date, financial institutions are willing to consider your request to keep the vehicle more indulgently and may result in you being able to keep the vehicle. This grant from the financial institutions is occurring more frequently, please keep in mind that there is no guarantee for you to keep the vehicle, especially should your vehicle be in arrears. Please note that arrangements must be made with the financial institution prior to sequestration application.
Vehicles registered in another person, or legal persons, name will not form part of the estate.
