WHAT IS THE SEQUESTRATION PROCESS?
What is the sequestration process? Sequestration is the taking legal possession of assets, whether because of debt or non-payment – basically taking collateral on a debt. Similar to the garnishing process, this allows creditors or institutions to reclaim your assets legally, to make sure debt are paid.
What are the advantages of sequestration?
- Your income is still your own and you do not have to pay any creditor
- Only your creditors are notified of the process and not your employer or any other person.
- You will not have to attend Court
- Your counsellor can arrange with your financial institution to keep your vehicle if your instalments are up to date
What are the disadvantages of sequestration?
- You will be insolvent for at least the next 2 to 4 years.
- There are circumstances where you can apply for rehabilitation after 18 months, this is an exception rather than the rule. You may not have a cheque or credit card account active.
- You may under not take on any debt arrangements.
For more information, or for our reckless lending and debt services, contact us today.