Rehabilitation
Rehabilitation after sequestration is the process through which a person who previously surrendered their estate to the High Court of South Africa through sequestration, and have subsequently been declared insolvent, restores their legal status to that of solvent.
Rehabilitation thus relieves the insolvent individual of the legal implications of being insolvent and restores their ability to become a credit worthy consumer.
Rehabilitation can happen automatically in some instances (explained in more detail below) but is also a High Court application brought on behalf of the client through an attorney in cooperation with an advocate.
We often still find a predisposed notion or misbelieve from clients that an insolvent must wait 5 to 7 years after sequestration before they will become eligible for rehabilitation regardless of the state of their sequestration affairs. This is a misperception.
WHAT IS THE PROCESS FOR REHABILITATION?
Rehabilitation is the legal process as governed by the Insolvency Act 24 of 1936 under Sections 124 and 127A.
In order to rehabilitate after sequestration an application has to be made to the High Court who has jurisdiction. This typically refers to the High Court where the Sequestration order was granted.
This application will be complied by your attorney and presented to the High Court with the assistance of that attorney’s advocate.
Please contact our offices for more information about how you should proceed with your rehabilitation after sequestration.
