Rehabilitation is a legal process designed to relieve individuals who have been declared insolvent from the constraints of their financial past, restoring them to a status where they can once again engage in economic activities as creditworthy consumers. This process is governed by the Insolvency Act (Act 24 of 1936).
What Rehabilitation Means for You:
- End of Sequestration: The legal status of your insolvency is terminated.
- Debt Discharge: All debts due or arose before your sequestration, excluding those resulting from fraud, are discharged.
- Relief from Disabilities: You are freed from any legal restrictions imposed by your insolvency status.
The Rehabilitation Process:
- Preparation:
- We will contact your Curator to obtain your Liquidation & Distribution account, which the Master of the High Court must confirm. This document is crucial for your application.
- Notification:
- You must provide six weeks' written notice of your intent to apply for rehabilitation to the High Court.
- Eligibility Check:
- We will verify with the court-appointed Curator if any contribution was levied against your estate. This contribution, if any, must be settled before rehabilitation can be granted.
- Application Submission:
- We prepare and submit a detailed application to the court, supported by your affidavit, outlining why you should be rehabilitated. The court considers applications from six months to four years post-sequestration, depending on specific conditions.
- Court Order:
- Upon receiving the rehabilitation order, we ensure it is sent to credit bureaus. They update your status from "sequestrated" to "rehabilitated."
- Credit Record Clearance:
- All records of debts incurred before your sequestration are removed, providing you with a clean slate.
Why Act Early?
The law allows for an application to the High Court for rehabilitation after four years from the date of insolvency, or you could wait for automatic rehabilitation after ten years. However, acting proactively can significantly shorten this period, allowing you to rebuild your financial life sooner.Get in Touch:If you're considering rehabilitation or need more information, please contact us or make an online enquiry. We're here to guide you through this process, ensuring you can move forward with confidence.
