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HOW DOES SEQUESTRATION WORK ?

  • There must be benefit to creditors to be able to sequestrate. This mean that you must have assets that can be used as benefit for creditors.
  • It can be immovable property, and or vehicles, and or furniture, and or cash.
  • You will lose your property and vehicle if it is under finance but it can be used as benefit for creditors.
  • If you don’t have a vehicle or property a combination of furniture and cash can be used as benefit for creditors.
  • You will not lose your furniture as you will be able to buy it back from your trustee.
  • A trustee is appointed after you have been sequestrated.
  • The work of the trustee is to do the administration of your insolvent estate.
  • The trustee must turn your assets into cash and divide it pro-rata between your creditors.
  • Creditors will usually only be paid a certain percentage of their outstanding claims against you.
  • The balance or shortage is not enforceable against you as you are sequestrated.
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