Services / Insolvency

Insolvency

Insolvency Includes:

  • Liquidations and Insolvencies
  • Independent Business Reviews
  • Restructuring and Business Recovery
Short summary of services:

A brighter future awaits you! Whether your debt is Personal or Business we can help! Start fresh! Debt free! Covid 19 had disastrous consequences for individuals and businesses in South Africa and placed a tremendous strain on businesses and individuals. Many are finding themselves in a position of financial distress. We strive to understand the perspective and requirements of each client, providing an independent and objective approach towards achieving the right way forward for you or your business.

Frequently Asked Questions

What is insolvency?

It refers to the status imposed by the Courts on a legal person whose liabilities exceed their assets and where there is evidence, they are unable to pay their debts. You will require the assistance of an attorney specialising in property law (also known as a conveyancer) to help you transfer the title deed into your name.

What is sequestration of a personal estate?

It is a formal declaration granted by the Court the person is insolvent. The debtor can voluntarily surrender himself or one or more of the debtor’s creditors can apply to the court for the sequestration, a compulsory sequestration.

What are some of the pro’s and cons of being sequestrated?

Pro’s Once the notice of intention to apply for voluntary sequestration is published all legal action for debt collection are stayed. No more creditor calls and you do not need to make minimum payment to creditors which leave you with more money in your pocket. Con’s You cannot be a director of a company or managing director of a company or managing member of a close corporation when sequestrated. A notice is placed on your credit record.

What is liquidation?

Creditors’ Voluntary Liquidation happens when shareholders and directors agree to place the business into liquidation because it can no longer pay its bills when they fall due. All trading will cease and company assets are sold in order to repay creditors. Compulsory Liquidation, in this case a creditor has usually been chasing the company for payment of a significant amount, and on finding themselves unable to collect what is owed.

What are some of the pro’s and cons of liquidation?

Pro’s
All legal action is halted.
Leases can be cancelled.

Con’s
You cannot continue to trade.
If you as a director has given a personal guarantee, you will be liable in your personal capacity to repay the debt.

Insolvency Specialists

WIETZ-DE-BRUYN-(Insolvency-Practitioner)

Wietz de Bruyn

Insolvency Practitioner

ELAINE-PATKA

Elaine Patka

B.Sc., L.LB, L.LM

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