Insolvency Services
Our team provides clients with a user-friendly engagement model and service of a consistently high quality. We have experience advising on a wide range of insolvency solutions throughout South Africa and have considerable experience in insolvency filings in multiple jurisdictions.
Always well prepared, we provide clear and succinct advice, have good negotiation skills and an excellent commercial understanding. We are seldom late on deliverables and always put sufficient resources into projects. Services include Sequestration, Voluntary Surrender, Voluntary Sequestration and Business Liquidation.
We will Help You Every Step Of The Way
Sequestration is a voluntary Debt Solution that can help individuals write off unsecured debt. The type of individual applying for this solution wants to draw a line under their debt, and have it written off, so that they can move forward with rebuilding their financial health. This solution is designed to be used only when you are genuinely unable to meet your unsecured debt obligations and repayments.
For every R100,000 worth of debt you owe, you will only pay back R20,000-R25,000. Some of your debt will be written off 100%. Interest charges stop accumulating and so you become credit worthy in 24-48 months. This is a great solution for individuals who have tried Debt Review, have had assets repossessed or are more than 6-12 months in arrears with their debt repayments.
When a Company goes into liquidation, it means that the business is closing by selling off their assets to pay their creditors. Liquidation of a company can be in the form of a creditors voluntary action, members voluntary action or compulsory.
The Company liquidation process will differ based on the type of liquidation, but it will involve the sale of business assets, holdings and property and is normally followed by the closure of the business. The aim is to pay the Creditors as much as possible to give them the best outcome and wind down the business.
There are three types of company liquidation. The route chosen will depend upon whether the company is solvent or insolvent and who instigates the process
Insolvency is a term used for when an individual or Company can no longer meet their financial obligations to Creditors. Insolvency can arise from poor cash management, a reduction in cash inflow, or an increase in expenses.
Before an Insolvent Company or Individual gets involved in Insolvency proceedings, they will likely be involved in informal arrangements with Creditors, such as setting up alternative payment arrangements directly with Creditors or seeking a Debt Counsellor for third party assistance.
There are several Debt Solutions available if you're insolvent. These are legally binding and give you protection from your Creditors. In most cases, Insolvency Solutions are only suitable if your debts add up to more than the value of the assets you own.
Bankruptcy is a formal court procedure which involves the selling of assets or if an individual does do not own assets, makes monthly payments to settle debt. The monthly payments are much less as a large portion of the debt is written off and interest charges along with legal costs cease.
The assets and cash repayments are dealt with by a licensed and regulated Insolvency Practitioner or by a Trustee appointed by the Master of the Court.
Bankruptcy usually lasts 2- 4 years and once you have met your obligations and been freed (discharged) from your bankruptcy, you can return to being credit worthy. The bankruptcy notice is removed from your Credit Report restoring your Credit Score.
Credit Rehabilitation
Credit Rehabilitation is needed when an individual is insolvent and their estate is subsequently sequestrated. It is the process (whether automatic or made by an order of court) to remove the insolvent status from the Credit Report.
If ordered by the court, credit rehabilitation can only occur once the benefit to the Creditors has been realised. Only an Insolvency Practitioner can assist with court ordered Credit Rehabilitation.
If an individual chooses not to rehabilitate through court processes then Credit Rehabilitation occurs automatically after 10 years. An Insolvency Practitioner is not required for this.
Credit Rehabilitation restores the Credit Score and removes the Sequestration notice from the Credit Report.
For anyone faced with serious debt management problems, it is vitally important to be fully aware of all the options available and to get advice from genuine experts in the field.
There are a variety of alternative routes. What you need before you make any decisions, regarding your debt, is clear and impartial guidance and that’s where Solvendi can help. We have teams of experienced practitioners that can guide you in making the best decision possible for your unique situation.
Choose A Team Of Trusted, Efficient Legal Specialists.
Call us directly to find out more and to arrange a free consultation