Sequestration rehabilitation is a legal process which happens by order of the High Court of South Africa, whereby the Insolvent (applicant) is declared financially fit and proper again by the High Court. When a person has been sequestrated, he/she can apply for rehabilitation. Once rehabilitated, the sequestration comes to
an end and the insolvent can start afresh. Rehabilitation is not compulsory after you have been
sequestrated but in certain circumstances an Rehabilitation would like his/her credit worthiness to be reinstated as quickly as possible for example when you want to buy a property or when you need your name to be in good faith for business purposes. In terms of the Insolvency Act, Act 24 of 1936, a person is automatically rehabilitated after a period of 10 years has expired from date of sequestration that
means that should you not apply for a Rehabilitation you will automatically be rehabilitated after 10
years

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When do I qualify for Sequestration Rehabilitation?

It is generally accepted that one can only rehabilitate after a period of four or five years has lapse since
the time of your Sequestration order was granted. This is just a general time frame and in actual fact in
some instances one can rehabilitate much sooner and in certain circumstances as quickly as 6 months
after your Sequestration Order was granted. There are 7 Sections in the Insolvency Act which deals with
8 circumstances under which you can Rehabilitate. Each of these instances has its own time frame and
can be complicated to explain. The first criteria in all of these different circumstances is that the Curator
Fees must be paid in full, or if there was a property involved in the sequestration the rule of thumb is to
wait until the Curator finalized the estate before one can apply for Rehabilitation.
The best way to determine when you are eligible for Rehabilitation is: once you have paid your Curator
fees in full to start with an Application for Rehabilitation and ITC Clearance. As soon as we receive your
Application Form our office will do all the necessary checks and assessments and will report back to you
when you can apply for Rehabilitation.

Sequestration Rehabilitation process.

Once we establish that we can proceed with your Rehabilitation Application a notice is published in the
Government Gazette. A report is requested from the Curator as well as from the Master of the High
Court, which gives permission for a rehabilitation application to be lodged. The report from the Master
can take anything from two weeks to one month to obtain and it is necessary before we can proceed
with the application. An affidavit is drafted for the Applicant to sign before a Commissioner of Oath and
an application for rehabilitation is made to the High Court.
On the court date an Advocate will present the application on your behalf. There is no need for you to
attend the court hearing in person. We will notify you of the outcome and will send you a Copy of the
Rehabilitation Order.

sequestration rehabilitation costs

Cost for sequestration rehabilitation is R12 000
Options as follow:
1. Deposit of R 6000 – Balance 2 weeks before the court date R 6000. Total R12000
2. Deposit of R 2000 – R 1800 per month for 6 months Rehabilitation cost on option 2Total R 12 800) or
3. Instalments R 2000 for 3 months (until R6000) – then we start with rehabilitation and client continue with R1200 for 6 months. (Total R 13 200)
4. Guardian fund money
In the case of when the Curator informed us of Guardian fund money available we
will claim R 12 000 from the outstanding amount.
Or
you are welcome to look at the above options for payment thereof.
Please take note if you are making use of the instalment options and you do not comply with our arrangements we will load you as a “non-payer” on ITC.
Please contact us for further information.