Debtfree Magazine Issue 4 of 2021

SEQUESTRATION - IS IT AN OPTION?
IS SEQUESTRATION
RIGHT FOR YOU?
Some consumers who are in debt distress have started
the sequestration process and gone to court to be
declared insolvent only to be turned down by the
courts. Why?
In those cases, it was because the court figured out that the
consumer could rather enter debt review and pay off what they owe
over a number of years. In those cases, this was because the courts
also worked out that the credit providers would get all their money
back instead of just a portion of the debt. This does not happen
every time but the math has to be clearly to the benefit of the credit
providers and the courts like to see that around a fifth (+- 20 Cents
out of each Rand owed) will be paid back to the credit providers.
Also, it is important to remember that the process itself costs money
and you will have to pay attorneys for their services. These fees vary
anywhere from R20 000 to R50 000 according to Attorney Wessel
Symington of Steyn Coetzee Attorneys. This is why it is always a good
idea to talk to an attorney about the process and see if they feel that it
is the right option for you. In many cases qualified Debt Counsellors,
who know the process, might also be able to give advice about
whether sequestration would be of more benefit to you than debt
review.