Frequently asked questions
I want to Sequestrate but I own property?
A financed property should be sold first before applying.
This can be done by:
1. Approaching an estate agent.
2. The quick sale department of the bank that is financing your property. They will try to sell the property for you over a 3-6 month period and in many instances will allow you to live in the property for that period without having to pay the Bond Installment.
3. Approach an auction house.
If your property has already been repossessed then the shortfall from selling the property will be included in the Sequestration.
Once you are rehabilitated you can own a home again or apply for a new bond.
I want to Sequestrate but I own a vehicle?
A financed vehicle will:
1. Have to be returned to the bank.
2. Can be sold and you can keep the profit.
3. Can be sold and the shortfall can be included in the Sequestration.
4. Can be transferred/sold to a friend or family member. Sometimes employers are prepared to by the car from you and then deduct the installment from you salary until settled. The vehicle at that point can be transferred back to you once settled.
A paid off or settled vehicle:
You can keep the vehicle. It will not be repossessed.
Once you are rehabilitated you can apply for vehicle finance again.
Must I apply for a new tax number?
Yes. You are now operating in a new estate. Your old estate is written off.
Once the curator is appointed will instruct you to do so. You will also be required to notify SARS of your new bank account when you apply for the new tax number.
Why? If you do not change your tax number and bank account all refunds or rebates will be allocated to your old tax number and therefore form part of the benefit to the Credit Providers.
If you obtain a new Tax Number and bank account this will not occur.
What are the cons of Sequestration?
1. You cannot be a member of a closed corporation or PTY Ltd.
2. You cannot administrate a Trust Account.
3. Your credit report will reflect that you are sequestrated.
4. If you work as a Tax consultant, broker ro financial adviser - or in any financial position you may struggle to find new employment. Your company can end your employment if there is a clause in your contract about being Sequestrated.
5. You can rent from owners, but probably not from rental agents.
What will happen to my medical aid, insurance and policies.
You have the right to the above as long as you can afford to pay the monthly premiums.
What will happen to my cellphone contract?
If your cellphone contract is up to date you can continue to use the services. You will not be able to upgrade to a new contract. You will stay on the same contract for as long as keep the payments up to date.
If you are in arrears the outstanding contractual agreement will form part of the Sequestration.
You can use "pay as you go."