Rehabilitation
One of the major benefits of the voluntary sequestration process is that you can subsequently be rehabilitated, ending any restrictions you may have had as an insolvent. An application to the Court is needed and there are various factors that the Court will consider before granting a rehabilitation order.
In terms of the National Credit Act, your credit record relating to debt you had before your voluntary sequestration is cleared when you are rehabilitated. There will only be a notice of your rehabilitation on the record for the next 5 years.
Rehabilitation can generally happen 4 years after the date upon which you were sequestrated. However under certain circumstances this can take place sooner.
Rehabilitation can generally happen 4 years after the date upon which you were sequestrated. However under certain circumstances this can take place sooner.
It is not always necessary for an insolvent to apply for rehabilitation. If being an insolvent has no negative consequences or disadvantages for you, there is no reason to incur the legal costs for an application for rehabilitation. In such a case, rehabilitation occurs automatically after 10 years from the date of sequestration.