What are the sequestration processes, with or without a property, with moveable assets or cash only? Do they differ? Read more about it here.
I • Sequestration with a property
You own a house which is still financed by the bank. This means that the property will have to have enough equity to repay the bank 100% of the outstanding bond together with 20% of the debt you owe to the concurrent creditors (this is on the credit cards, personal loans, school fees etc.). The house will eventually be sold on auction. You will however still be able to live in the house, free – but you will have to pay the water and electricity. The bank cannot repossess the property whilst you are under sequestration and no creditor will be able to take any legal action against you.
II • Sequestration without a property but with moveable assets
You do not own a property and are currently renting but you own moveable assets such as Furniture. You will only repay 20% of the outstanding debt to your creditors and your moveable assets will remain safe and in your possession. Your payment restructuring will be over a period of 18 – 21 months and the payments will be interest free. Immediately upon beginning with the process your creditors can’t take any legal action against you and you will be 100% protected from them even though you are still repaying over 18 – 21 months.
III • Cash Sequestration
You are able to repay the 20% of the outstanding debt in cash immediately before the sequestration court date. This means that you will be able to apply for rehabilitation as soon as 6 months after the date of sequestration which will enable you to again be credit worthy.