Voluntary insolvency

For the best advice and information on Voluntary insolvency, you have come the right place. We have been the industry leading Insolvency Practitioners in South Africa since 1999, and furthermore we have helped thousands of clients.

Voluntary insolvency helps you write off up to 80% of your debt

Have you been previously sequestrated, we give the best advice on the process of sequestration rehabilitation

South Africans are falling into more debt as a result of ever rising cost of basic living and the cost of credit. It is a statistical fact that more than half of our population is unemployed and in debt. Therefore scraping together whatever they can to survive.

Even high-income households can very quickly fall into debt and not see a way out with creditors knocking at their door for collection.

Debt counseling and Debt review will furthermore be the first remedy against bad debt but in certain situations, this is too little too late.

The process of Voluntary insolvency

The first step when formally applying for Voluntary insolvency is to advertise your intention in the Government Gazette and consequently in a local Newspaper.

The adverts gets placed on n Wednesday and is therefore published the week after that on the Friday. As soon as your advert is published, the process has formally started.

Very important to remember is that this advertisement therefore serves as a legal notice to all creditors.

Once the advert is published, we can submit your statement of affairs to the Master of the High Court as well as to the local Magistrates Court. This affairs statement will lie for inspection there for a period of 21 days and therefore comply with the Act

Pre paid registered notices can now be sent to all your creditors, including and most noteworthy SARS

We will now draft a founding Affidavit that will therefore serve as your header in the court file

All other documents stated above must also be supplied as “evidence” to the court that shows we have finally indeed complied with the formalities

Once we have all the paperwork in order, we can as a result approach the court to open a file for Voluntary insolvency.

Depending on the court role and availability, we can then place the file for hearing so that in conclusion a final offer of Voluntary insolvency can be made

The cost of Voluntary insolvency

We will advise you on the monthly contribution amount before we start any application. The base cost for Voluntary insolvency is R6000

Your contribution amount when you apply for Voluntary insolvency will consequently be determined by the total outstanding debt that you have and therefore be specific to every application

You can pay your contribution amount over 12, 23 or 30 months.

Pro’s and Con’s of Voluntary insolvency

The biggest advantage of Voluntary insolvency is that you will therefore write off up to 80% of your debt

All legal action and repossession will stop immediately

Probably the biggest downfall for Voluntary insolvency clients id that all secured credit ( houses and cars) will consequently have to be either returned to the bank (vehicles under finance) or therefore sold to generate money onto the insolvent estate

Vehicles under hire purchase agreements will always be safe

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