Oyisa United Debt Specialists - Products
Sequestration & Liquidation
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Sequestration is the process of selling or using assets to cover outstanding debts with creditors. Sequestration is presented in two forms in South Africa: Voluntary sequestration, where the indebted individual opts to use assets to cover debts, and compulsory sequestration where a court attaches assets as a form of settlement for debts. When a business fails and is unable to pay its debts, it is placed into liquidation. Liquidation encompasses the process of a liquidator taking charge of the estate and selling the assets by way of public auction. If auctioning off the client’s assets does not generate enough revenue to pay off debt, credit providers will turn to personal sureties to pay the difference. If the directors or members cannot settle the outstanding debts, then they have the option to include these debts under debt review, or apply for sequestration in their personal capacity.