What happens to property belonging to the insolvent?

Property of insolvent

 On the granting of a sequestration order the insolvent is divested of his estate property. When a trustee is appointed the estate will vest in him and, pending such appointment, the estate vests in the Master.

The estate remains vested in the trustee until the insolvent is reinvested therewith either pursuant to a composition or until his rehabilitation.2 The insolvent's estate includes all property owned by him at the date of sequestration and, save for certain exempted and excluded categories thereof, all property subsequently acquired by him or accruing to him during the sequestration (after-acquired property) The term "property" as defined in section 2 of the Act includes movable or immovable property wherever situated within the Republic of South Africa, and includes contingent rights in property other than the contingent rights of a fideicommissary heir.

Apart from property in the Republic, movable property of the insolvent in a foreign country will in terms of the common law also vest in the insolvent estate of the debtor if sequestrated by the court where he is domiciled

 If a trustee seeks control over immovable property situated in a foreign country, he must first obtain recognition from the foreign court. If he fails to obtain such recognition, the immovable property remains vested in the insolvent.6 The Cross-Border Insolvency Act  will as soon as the Minister of Justice designate states in terms of this Act, regulate this area of the law with regard to designated states. The non-designated states will then still be governed by the current common law principles.