|1.||The Importance Of Choosing The Right Specialist Attorney||Show|
|5.||What Is Sequestration?||Show|
|6.||Things I Need To Know||Show|
|7.||Checklist For Consumers In Sequestration||Show|
|8.||What Is Liquidation?||Show|
|9.||What Are The Different Types Of Liquidation?||Show|
|10.||What Is The Process To Liquidate?||Show|
|11.||What Are The Consequences Of Liquidating A Company?||Show|
|12.||What Is The Order Of Distribution?||Show|
|13.||What Are The Costs- Including Hidden Costs?||Show|
The Importance Of Choosing The Right Specialist Attorney
Sequestration and Liquidation is a massive change in one's life - it is about letting go of things that have significance to you; it is about accepting and acknowledging financial mishaps; it is about making peace within yourself that an asset that may have meaning to you, does not define who you are as a person; it is about a new beginning and ensuring past mistakes are not repeated; it is a humbling experience.
The magnitude of choosing the right attorney when looking to go into sequestration is of utmost importance, for this decision will have a huge impact on your life.
It is also important to ensure that while you go through the many emotions and the grief of the "if only" stage, that you do not have added stresses because of incompetent sequestration specialists.
Be careful of who you choose, realise that this is your life and any form of negligence or incompetence will have a severe impact on your life because you will be in a vulnerable stage. Take warning to sequestration specialists who charge exorbitant fees, who are too low-priced and who do not disclose all figures to you up front.
Ensure that you deal with a reputable company that has been in existence for some time, who has a good track record and who are specialists in their field. Attorneys who are not specialising within this area can offer you assistance, but they are not always the best one's to use.
As with anything in life, a specialist is always better equipped and experienced.
Why theDCI Recommends Green Debt
After dealing with many various sequestration specialists throughout the country, for many months, in an effort to be able to deliver the best of the best for consumers, theDCI is proud to recommend Green Debt as our specialists of choice.
theDCI has tried and tested Green Debt's services and support structure - the response from consumers has been highly recommended and positive.
It is important to note that theDCI does not take any kickbacks or offer any kickbacks from any of the Attorneys that we have recommended either within the consumers section of this site, or within the secure section of this site.
theDCI supports Green Debt because of their passion to assist consumers, their drive to ensure work is done ethically with the highest of standards, but never at unreasonable rates or to the detriment of the consumer. theDCI will only make recommendations to consumers once we have proven case history.
Who Are Green Debt?
Green Debt is a company that has been established with the aim to assist people who still experience severe financial difficulties after all other possible solutions are exhausted. A perfect example would be consumers who are currently in debt review, who for various reasons can no longer afford to pay their agreed rehabilitation amount.
The purpose of Green Debt is to provide a secure, cost effective and efficient approach to overcome financial stressors experienced by consumers, while keeping their dignity intact.
Green Debt has established national relationships with market leading attorneys. All of the professionals involved with the company are exposed to strict screening and process evaluations. The advantage for consumers is that they will be ensured of fixed pricing and diligent service.
Green Debt's personnel are professional, friendly, helpful and very competent. The personnel are all fully trained in the services provided and they offer a free consultation whereby consumers will be comprehensively informed regarding the processes and risks in each service provided. Part of their service provided includes a full support system throughout the process.
Green Debt are dedicated in assisting consumers at every step on the path to financial stability and they specialize in placing their clients with the best professionals that suites their specific needs and will give them the best debt solution at an affordable price.
No matter what your situation or your debt is, Green Debt has designed custom made solutions for each and every need. Their ultimate mission is to assist their clients to become financially independent again.
Contact Details For Green Debt
087 151 0543
|Email Address||:||firstname.lastname@example.org||SMS your name to 071 360 0038 and they will get back to you|
|Website Address||:||http://www.greendebt.co.za||Fax Number||:||
086 242 3869
What Is Sequestration?
Sequestration is part of a solution that has been put into effect to help ease the financial burdens of a consumer. It is also the last option that is available for consumers.
This option is usually sought when all other possible solutions available, have not helped to ease the financial weight, when there has been a loss of income, when consumers in debt review cannot keep to their monthly rehabilitation amount or when the consumer would not be able to apply for debt review because of existing legal action that has been taken by their creditors.
It is a structured method of getting rid of all your debt with immediately effect through the courts in a legal manner.
There are two methods in which to be sequestrated;
It is a voluntary surrender of an estate. In other words it is your choice to be sequestrated.
It is a hostile approach and you are forced into sequestration.
Your creditors apply to the High Court for a sequestration order.
Things I Need To Know
What Are The Advantages?
What Are The Disadvantages?
What Is The Process?
Sequestration With A Property
Immovable Property - You should have a Bond
Be careful of adverts in the newspapers that tell you that they can let you keep your property even though you sequestrate.
This is unlawful and not the truth.
Sequestration Without A Property
Known as Voluntary Surrender of Estate With Movable Assets
What About My Vehicle?
When Is It Too Late?
It is never too late. The only qualifying aspect is that you must have enough available capital in your assets or alternatively financial support to prove benefit to your creditors.
What Are The Costs- Including Hidden Costs?
Sequestration/Voluntary Surrender of Estate: R6800.00
This will cover all costs involved for the court to make the order.
The benefit in terms of the creditors, are not included in this above cost for consumers seeking to surrender their estate voluntarily with movable assets, as it will be different for all applicants.
The amount will be known by the applicant beforehand and is calculated according to the applicant's outstanding debt.
Checklist For Consumers In Sequestration
It is important to ensure that your attorney does the following in a Sequestration or Voluntary Surrender of Estate.
There must be a publication in the Government Gazette on a Friday.
It is approximately two weeks after consultation with the attorney. Ask the attorney will provide the exact date.
On the same Friday that your publication appears in the Government Gazette, an advert will be posted in a news paper that is circulated in the area of the person applying for the sequestration.
Seven days after the advertisements were posted a registered letter will be forwarded to all the creditors.
The statement of affairs will be lodged at the master of the high court for 14 days after the advertisements were posted in the two newspapers.
Ask your attorney for a date for your proceedings at the high court.
This process takes approximately 6 weeks to conclude.
Your attorney should provide you with weekly updates on the process.
Once the application has gone through the courts successfully, you and all your creditors will be provided with a copy of the court order.
What Is Liquidation?
Liquidation is part of a solution that has been put into effect to help ease the financial burdens of a company. It means to wind up the financial affairs and contractual obligations that brought the company into existence.
This option is usually sought when all other possible solutions available, have not helped to ease the financial weight, when there has been a loss of ability to generate enough funds to sustain the company, when the outstanding debt has failed to be collected for numerous reasons, when no further credit lines are available, which in turn, forces the company to not have the ability to trade further.
It is a structured method of closing down the company through the courts in a legal manner.
There are two methods in which to be liquidated;
Voluntary - this is by a shareholders resolution.
Compulsory - this is done by a court order, which would usually be done by one of the company's creditors.
What Are The Different Types Of Liquidation?
Solvent and Insolvent Liquidations
If the company is insolvent it cannot afford to pay its creditors. What this means for the company's creditors, is that there could be a potential battle between all creditors because of the lack of assets to cover the full outstanding debts owing.
Provisions within the law are made to distribute equally between all creditors, in accordance with the size of their claims.
Creditors with signed security are given priority and a number of rules exist to enforce that all creditors are treated fairly.
Voluntary Liquidation by shareholders resolutions
This is when the shareholders appoint a liquidator who then becomes a mediator between all creditors and the shareholders.
Although it is not necessary to go through the courts for this process, the liquidator may ask the courts for assistance if necessary and the courts to have the power to remove the liquidator should it be deemed vital.
If the company is solvent the shareholders may administer the liquidator. If the company is insolvent, the creditors may take control over the liquidation process by application through the courts.
The court always requires proof of solvency or insolvency.
Compulsory Liquidation by Court Order
This application may be made by the company, the majority of its shareholders, creditors or the Registrar of Companies. It is a compulsory application and therefore must go through the courts to obtain the order.
Although there may be a number of reasons for the application, the main reason must be because the company does not have the ability to pay its debt. It is at the courts discretion, whether or not to grant the order.
What Is The Process To Liquidate?
For compulsory liquidations the court will appoint a liquidator. For voluntary liquidations the company through a shareholders resolution will appoint a liquidator.
The liquidator will collect all the assists and pay the creditors in order of priority.
Should there be any additional funds available, the liquidator will distribute to shareholders.
The company is then dissolved.
What Are The Consequences Of Liquidating A Company?
The company may still be able to have limited trade only until the liquidation process has run its course.
The company is not in control of their finances or assets. It may not sell its property.
All company directors' powers come to an end once a liquidator is appointed.
Once the liquidation becomes an Order of the court, all employees contracts end with immediate effect. Permanent employees that have contracts which enforce a notice period will be entitled to a damages claim.
It is impossible to rehabilitate a company.
What Is The Order Of Distribution?
This is enforced by the courts. Secured creditors have the first rights to any assets. If there are any funds available distribution occurs in the below order.
All costs and expenses involved in the liquidation.
All monies payable to employees.
Interest pertaining to debt.
All outstanding debt to shareholders and investors.
What Are The Costs- Including Hidden Costs?
This will cover all costs involved for the court to make the order.