Voluntary and Involuntary Sequestration, and When is an Insolvency Attorney Appointed?
It should be noted that voluntary surrender and forced sequestration is the same thing. The only difference being who brings the application. The sequestration process involves a court application, and the applicant is either you, the debtor, or a creditor.
An insolvency attorney, or insolvency attorney South Africa, will investigate your financial situation and if you are factually deemed insolvent, meaning your liabilities exceed your assets, you can then voluntarily surrender your estate and lodge an application to the High Court of South Africa, in which the sequestration of your estate will proceed. In the case of forced sequestration a creditor may lodge an application with the High Court of South Africa, and sequestration will proceed to settle the debt with the creditor/creditors. In either scenario an insolvency attorney will used to assist in the process. When overrun with debts that can no longer be met and creditors are hounding you, there are many ways in which a financial solution can be found, but in some cases an insolvency attorney should be consulted. If the insolvency attorney cannot negotiate further agreements with creditors sequestration may be considered, granted the debtor meets the qualifying criteria.