Voluntary Surrender

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Frequently asked questions

Will my friends and family find out?

No. Your Voluntary surrender is confidential. We will not inform anybody of your status. However, Credit Provider, new employers, rental agents etc. who conduct credit checks will have access to this information. In any of the above examples it is important to be honest and transparent regarding your situation. Make use of references to verify your credibility and integrity where employment offers and rental agents are concerned.



What do I tell my Credit Providers?

Try not to deal with Credit Providers yourself. We will handle credit providers on your behalf. You will be given a copy of the registered letters we send to your Credit Providers stating that the application is in progress. Once Voluntary Surrender is granted we will also provide you with a copy of your Court Order. You can send this to your Credit Providers as proof if necessary, but under no circumstances pay them any additional money. Unfortunately most Credit Providers have large call centres manned by unsympathetic consultants who are paid commission for collecting money from you. They will call you and threaten you to make payment. Don't. This will eventually come to an end 3-6 months after the court order is granted.



Will my application for Voluntary Surrender succeed?

We can't pretend that we will always succeed, but on a balance of probabilities we have been 99% successful with our previous applications since we started assisting consumers with Voluntary Surrender. In the last 5 years we have been 100% successful in finalising applications. The success of your application is based on a number of factors which is determined by the judge that oversees your application in court.



Can I apply for Voluntary surrender while under Debt Review?

Yes. As a matter of fact, your are guaranteed a successful outcome if you have tried Debt Review first.



Will my current employer be informed of the application for Voluntary Surrender?

No. Exceptions: If you owe your employer money then they will be notified by your Trustee, unless you intend to settle the debt with your employer. Some professions require that you complete a financial declaration as part of your employent contract. Voluntary Surrender forms part of this declaration and you may be required to disclose your status. For obvious reasons though, if you want to keep your voluntary surrender under wraps it is wise to be careful who you share the information with at work.



Is my income protected?

Your future income is protected and legally prohibits Credit Providers from obtaining garnishee orders or emolument attachments for outstanding debt. Existing garnishee orders and emolument attachments will be removed from your salary through the Voluntary Surrender Court Order.



Can I be a member of a Closed Corporation or a Director of a Company?

Not really, although it is entirely dependent on your Trustee and under a curtain set of circumstances. In some instances you can ask your Trustee to give you a letter allowing you to be a member of a Company or PTY. This is the exception rather than the rule.



Can any equipment or tools I need for work be repossessed?

If tools of the trade are still being financed, they will form part of your insolvent estate. If you don't owe any money on your tools of trade or equipment then you can keep your tools as they are needed to generate an income.



Can my pension be attached?

No. Section 23(7) of the Insolvency Act prohibits the attachment of your pension, and annuity funds or any other funds that fall under the Pensions Act.



Do I have to pay child maintenance?

Yes. The sequestration does not affect a maintenance order. You can obviously approach the maintenance court to reduce your maintenance.