Difference between Sequestration, Debt Counselling & Administration

Sequestration 

• Application is lodged in the High Court of South Africa. The application can be enrolled within five weeks.
• Court rules entail that all creditors are included and that all creditors accept the court order.
• No maximum limit to the amount of debt.
• A percentage of the total outstanding debt is payable. It does not accrue interest.
• No further debt can be made.
• Money is paid directly to the curator.
• Movable assets are included in the insolvent estate and are used as collateral. An agreement with the curator will ensure it is not removed.
• The curator will have to sell any immovable assets (house/flat) registered in your name, to pay the creditors.

 Debt Counselling 

• Application is lodged in the Magistrate Court, but it can take up to a year before it is enrolled.
• Debt is excluded that has already been handed over to attorneys for legal action.
• No maximum limit to the amount of debt.
• No further debt can be made.
• You pay the entire amount plus interest and costs. This can take up to 30 years.
• Money is paid to a distributing agent to pay the creditors.
• Movable assets do not form part of the process.
• You may keep any immovable assets providing the bank has accepted a minimum payment and no legal action has been taken.

 Administration 

• Application is made in the Magistrate Court and is enrolled within two months.
• “Cash loans” agreements are excluded from an administration and you must pay the outstanding amount.
• The maximum amount of debt is R50 000.00
• Should you owe for example R50 000.00 it still accrues interest and costs that may amount to R132 000.00
• No further debt can be made.
• Repayment amount is deducted directly from your salary with permission of your employer.
• Movable assets do not form part of the process.
• You may keep any immovable assets providing the bank has accepted a minimum payment and no legal action has been taken.
• You may keep any immovable assets as long as you pay the premiums.

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You can edit all of this text and replace it with anything you have to say in your news/topic article. You can also change the title listed above and add new articles as well. Edit your Articles from the Pages tab by clicking the edit button. This is a generic article you can use for adding article content / subjects on your website. You can edit all of this text and replace it with anything you have to say in your news/topic article. You can also change the title listed above and add new articles as well. Edit your Articles from the Pages tab by clicking the edit button. This is a generic article you can use for adding article content / subjects on your website.

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