Allows a consumer to make a “fresh” financial start. It is a legal process resulting in an individual being freed from their overwhelming debt obligations. The Credit Providers receive approximately 40% of your overall debt and the other 60% is written off. The 40% owing is split into 18 instalments. Once these instalments are paid in full the consumer is considered to be debt free.

What is Sequestration?

If as an individual you are unable to service your debt obligations, an application can be made to write off 60% of your debt by Sequestrating your estate. In instances where an individual has a large amount of unsecured debt, taking more than 5 years to settle, Sequestration is a better option than Debt Review or Debt Management. It is the best legal mechanism  an individual has access to in South Africa to manage debt problems. Not only is the debt owed reduced, but also the repayment term.

Sequestration Process

Government Gazette

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

Ability Statement

An ability statement is drafted that you must sign before a Commissioner of Oaths. This document is lodged for inspection at the Master of the High Court for 14 days or with the local Magistrate in the area in which you reside.

Notice to Credit Providers

Registered letters are forwarded to all your Credit Providers giving notice of the surrendering of your estate. Your Credit Providers will then contact the attorney on record for information. A copy of this letter will also be provided to you to enable you to present it to your creditors if necessary.


The South African Revenue Services are also notified, even if you are not registered with SARS. If you are a registered Tax Payer you are required to apply for a new tax number as you are starting a new estate.

An Advocate will appear on your behalf in court

On the day of the Court proceedings an Advocate will represent you. There will be no need to attend any court hearing in person.

A Curator is appointed

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 in order to arrange a consultation to explain the details to you.

The amount you pay back is determined by the Court

The Court Rules will determine the percentage you pay back - please see example below. 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.

Moveable Assets

As your estate is surrendered, the moveables are supposed to be sold on auction and the proceeds must be used to the benefit of your Credit Providers. However, arrangements can be made with the Curator to settle the amount in instalments over 18 months with written permission from the Curator. Therefore, should you owe R50,000.00 you can arrange instalments of R2,777.78 per month for 18 months – there are no further interest or other costs thereon.

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

You will receive a document, requiring you to list all moveables. 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 or sold. Movable assets are merely used as security while you are paying your instalments over the 18 months

Approval of Application

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.

Cost Of Sequestration

*R12 000.00

This cost can be paid off in monthly installments.

Please contact us.

Benefits of Sequestration

Your Salary

and other income.

Your Salary

is still your own and you do not have to pay any Credit Providers.

Friends, Family,

& Employers.

Only Credit Providers

Are notified of the process. Not employer or any other person. You will not be discharged from work because of it.

You don't have to

attend Court.

An Advocate

will appear on your behalf.

Disadvantages of Sequestration


Length of Insolvency.

You will be insolvent for

at least the next 4 years. There are circumstances where you can apply for Rehabilitation earlier, keep in mind that this is an exception rather than the rule.

Credit Worthiness

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.

Incurring New Debt

You may not have.

cheque account or credit card

You may under no circumstances engage in any debt arrangements or incur new debt without explicit permission from your curator.

Example of Sequestration

If you currently owe:

R50,000.00 to Credit Providers, you will only pay back approximately R24,500.00. The R24,500.00 is split over 18 months @ R1,360.00 per month

R100,000.00 you pay approximately R35,300.00. The R35,300.00 is split over 18 months @ R2,000.00 per month.

R200,000.00 you pay approximately R57,000.00. The R57,500.00 is divided over 18 months @ R3,200.00 per month.

* Please note that these are approximate figures and should not be used to determine your own status.

Frequently Asked Questions