Sequestration without a property

Apply for Sequestration Rehabilitation at Green Debt and we can help you with sequestration without a property and repair your credit status.

Information on the surrendering of your estate (movable assets)

The surrendering of your estate is a sequestration rehabilitation process instituted by the Courts to help persons that are no longer able to pay their debts due to circumstances out of their control. 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 Sequestration Rehabilitation procedure.

An advert is placed in the Government Gazette and the Burger. This will prevent any further legal procedures against you i.e. execution notices, seizure of your movable and/or immovable property, etc.

An ability statement is drafted that you must 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 in the area which you reside.

Thereafter a registered letter is forwarded to all your creditors as notice of the surrendering of your estate. Your creditors thus contact the attorney of record for information. You will also be provided with the same notice to enable you to forward 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, there will be no need to attend any court hearing in person.

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.

The Court Rules determine that you pay between 11c and 25c in a rand benefit to your creditors. In other words if you owe a creditor, R1-00, they should get between 11c-25c thereof. If your total debt is R50 000-00, you will pay approximately R24 500-00; R100 000-00 you pay approximately R35300-00; R200 000-00 you pay approximately R57 000.00 and so forth( Please note that these are approximate figures and should not be used to determine your own status). A fixed fee is already included in the amount payable and in doing so you will not be caught off-guard with unexpected attorney or curator costs after sequestration. The benefit of this approach is that the repayment amount does not accrue interest.

As your estate is surrenderd, the movabales are supposed to be sold on auction and the proceedings must be used to the benefit of your creditors.  However, arrangements may be made with the curator to settle the amount with them in instalments between 12 to 18 months, written permission is needed from the curator. Therefore, should you owe R50 000 you may(permission from curator) repay it in instalments of R2777-78 per month for 18 months – there are no further interest or costs thereon.

To generate the money in terms of the Rules of Court the following is done:

You will receive a document, requiring to list all movables. You must identify your assets on the document and describe each item e.g TV – Sansui 54cm etc. This document will be forwarded to the valuator, who will arrange a meeting with you, to establish the value of the items. *No furniture will be removed. The purpose thereof, as you do not own immovable property (e.g. a house), is to do a movable asset surrender. The purchase agreement, prepared by the curator, will be presented to you in order to assist in purchasing your assets back. Your assets will be evaluated at a market related price, which will be the figure used to purchase your assets back.

As soon as the application has been approved and granted, the curator will contact you to confirm the details in respect of your assets. * Failure to comply with the arrangements made with the curator will result in removal of the furniture.

Progress updates for sequestration rehabilitation will occur on a weekly basis, at which time you will be updated with the latest developments with your application.

Sequestration Rehabilitation


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 may be willing to consider your request to keep the vehicle more indulgently and may result in you being able to keep the vehicle. Please keep in mind that there is no guarantee for you to keep the vehicle.

Vehicles registered in another person, or legal persons, name will not form part of your personal estate. 

The difference between Administration and the surrender of your Estate:



Application is brought in the High Court of South Africa. The application can be enrolled within five weeks.

Application is made in the Magistrate Court. Application is enrolled within two months.

Court rules entail that all creditors are included and that the court order must be accepted by all creditors.

“Cash loans” agreements are excluded from an administration and you have to still pay the monies outstanding.

No maximum debt for application to be lodged.

The maximum debt for administration is R50 000.00

Should you owe for example an amount of R50,000.00, you only pay back R18,000.00 – it does not accrue interest.

Should you owe for example R50,000.00 it still accrues interest and costs, in other words you will pay back approximately R132,000.00

No further debt can be made.

No further debt can be made.

You pay the money direct to the curator.

Your employer must give permission that the repayment amount is deducted straight from your salary.

Should you have a immovable asset (house), it will be sold by the curator to pay the creditors.

Should you have immovable assets, you must still pay the premium sand can keep the property.


Disadvantages of surrendering your estate:

*You will be insolvent for at least the next 4 years. There are circumstances where you can apply for sequestration rehabilitation after earlier, keep in mind that this is an exception rather than the rule. For your insolvency period, you will not be credit worthy. You may receive permission from you curator in certain circumstances for example when you need to purchase a vehicle – this permission will only be granted on discretion by the curator, and then the financial institution will require someone to stand as security.

You may not have a cheque account or a credit card facility. You may under no circumstances engage in any debt arrangements or incur new debt without explicit permission from your curator.

* Dependable on your ability to honour arrangements with the curator

Advantages of surrendering your estate:

Your salary and other income is still your own and you do not have to pay any creditor.

Only your creditors are notified of the process and not your employer or any other person. You will not be discharged from your work because of it.

You will not have to attend Court.

Your curator may arrange with your financial institution (the bank) to keep your vehicle and if your instalments are up to date, to enter into a lease agreement.

It is of utmost importance to provide a 100% accurate list of all your creditors, to prevent unwanted red faces and difficult situations after sequestration.


Very important: FREEDOM – you and your family can start afresh, a new beginning – without debt. You do not have to be afraid of unknown numbers on your mobile.








In order for the Sequestration Rehabilitation to be applicable your relationship between you and your curator must be maintained at all times.