In a nutshell the result of declaring Bancruptcy is as follows: A curator gets appointed by tha Master of the Supreme Court.
The liquadator liquadates the assets of the Insolvent estate and pays the creditors in accordance with the terms laid down by the Insolvency Act.
Certain creditors will of course only be paid pro rata.
The debtors liabilities are then settled and will have no further financial obligations.
Debt counselling will result in the following: Debt consultation comprises the appointment of a debt counsellor who then approaches the creditors to negotiate a reduction of the various installments payable by the debtor.
this agreement can be made an order of court.
the full outstanding amount including interest is however still due and payable by the debtor and the original problem is only being delayed.
What is a Voluntary Sequestration (Bankruptcy Application)? The correct term is actually Voluntary Surrender, also commonly referred to as Bankruptcy or Insolvency.
This entails an application made to the relevant High Court to have all your assets realized and the proceeds divided amongst all your creditors in terms of the Insolvency Act, after certain costs have been taken into account.
Once the application is granted all civil legal proceedings against you are suspended.
The sheriff cannot attach or sell any of your assets, and your employer is prohibited from deducting money from your salary for Garnishee Orders.
Ownership of your assets now vests in your Trustee although you still have possession of the assets.
A Trustee is a person appointed by the Master of the High Court to administer your insolvent estate.
The Trustee will have to realise (liquidate) your assets by selling them back to you or by auction.
We tend to all negotiations for the re-purchase of your assets from the Trustee on your behalf.
The proceeds derived from your assets are distributed amongst your creditors in terms of the Insolvency Act, after certain administration costs are deducted.
Your creditors are forced to write off any outstanding debt as unrecoverable and cannot take any further legal action against you.
To get professional advice go to: insolvency.
org.
za
The liquadator liquadates the assets of the Insolvent estate and pays the creditors in accordance with the terms laid down by the Insolvency Act.
Certain creditors will of course only be paid pro rata.
The debtors liabilities are then settled and will have no further financial obligations.
Debt counselling will result in the following: Debt consultation comprises the appointment of a debt counsellor who then approaches the creditors to negotiate a reduction of the various installments payable by the debtor.
this agreement can be made an order of court.
the full outstanding amount including interest is however still due and payable by the debtor and the original problem is only being delayed.
What is a Voluntary Sequestration (Bankruptcy Application)? The correct term is actually Voluntary Surrender, also commonly referred to as Bankruptcy or Insolvency.
This entails an application made to the relevant High Court to have all your assets realized and the proceeds divided amongst all your creditors in terms of the Insolvency Act, after certain costs have been taken into account.
Once the application is granted all civil legal proceedings against you are suspended.
The sheriff cannot attach or sell any of your assets, and your employer is prohibited from deducting money from your salary for Garnishee Orders.
Ownership of your assets now vests in your Trustee although you still have possession of the assets.
A Trustee is a person appointed by the Master of the High Court to administer your insolvent estate.
The Trustee will have to realise (liquidate) your assets by selling them back to you or by auction.
We tend to all negotiations for the re-purchase of your assets from the Trustee on your behalf.
The proceeds derived from your assets are distributed amongst your creditors in terms of the Insolvency Act, after certain administration costs are deducted.
Your creditors are forced to write off any outstanding debt as unrecoverable and cannot take any further legal action against you.
To get professional advice go to: insolvency.
org.
za