Voluntary Surrender is a voluntary debt solution that can help individuals write off unsecured debt that would otherwise take many years to clear. Our Insolvency Practitioners will contact your Creditors on your behalf, taking away any stress and anxiety caused by creditor contact. Once voluntary surrender begins, creditors are unable to pursue you or take any legal action against you to recover any debt that is still owed.
What Is Voluntary Surrender - Voluntary Surrender Meaning?
Voluntary Surrender is a legal process you can apply for when you are unable to pay your debts. It can release you from most debts, provide relief and allow you to make a fresh start. You can enter into voluntary sequestration or voluntary surrender. To do this you need to complete and submit a Voluntary Surrender Application Form. A Voluntary Surrender order normally lasts for 24-48 months.
How does Voluntary Surrender Work?
The Voluntary Surrender process is a High Court application that declares an individual insolvent. 75% of all unsecured debt incurred up to date of the court order (the Sequestration Order) is written off. A curator is appointed after Sequestration. The curator's job is to wind up the insolvent estate of the debtor that was Sequestrated. Winding up means that the curator must distribute the 25% remaining to all credit providers. This can either be done by paying off the 25% in full using retrenchment/pension/family money or in installments paid off over 18 months.
Am I eligible for Voluntary Surrender?
You can apply for Voluntary Surrender if you meet these requirements:
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you are unable to pay your debts when they are due.
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your debt has been handed over to collection agencies.
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you have shortfalls on assets such as vehicles and a home that has already been repossessed.
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You have tried Debt Review and the installment is still not low enough to assist in managing your monthly living expenses.
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You have judgements and emolument attachments on your income.
There is no minimum or maximum amount of debt or income you need to be eligible.
Types of Debts that can go into a Voluntary Surrender application:
INDIVIDUALS
Shortfalls from assets that have been repossessed and auctioned.
Financed Vehicles. Vehicles that are paid up do not form part of the application.
Pay Day Loans
Loans
Overdrafts
Credit Cards
Store Cards
SARS Penalties
Cell phone Contracts
Other third-party Contracts
