Rehabilitation and ITC clearance
Rehabilitation process consist of two components:
- Rehabilitation Order obtained in the High Court.
- ITC Clearance on all Credit Bureaus.
What is rehabilitation?
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 Insolvent would like
his/her credit worthiness to be re- instated 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
When do I qualify for 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 a Rehabilitations 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.
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 months
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.
The fact that a rehabilitation order was granted by a High Court, does not mean that the insolvent’s blacklisting on ITC is
removed automatically. Our office will inform all 12 ITC Bureaus in South Africa of the Rehabilitation Order that was
granted. ITC Bureaus takes approximately 30 days to update their records. Some of our clients reverted to us within the
21 days, which ITC confirmed with text message that their credit record has been updated. The ITC Bureau’s policies are
not consistent and although they should apply with the new national credit act’s regulations we find that in some
instances they have not update their records after receiving the necessary documents and information regarding the
Rehabilitation. But be assured that we will do all in our power to have our client’s name restored. All communication
between us and the ITC Bureaus will also be send to you so you will have all the necessary proof that it was done and
will have all information on hand for in case you need proof that it was done. We find that the banks have no problem
granting bonds or other debt once a person have been rehabilitated.
End Your Debt will do the ITC Clearance process once the Rehabilitation Order is available.
Cost for Rehabilitation and ITC clearance:
A Facilitation Fee of R 4 500.00 is payable to End Your Debt. This fee can be paid in 2 Installments of R 2 250.00. This fee
is to prepare the application with all necessary documents, do all checks to see when the application can be brought in
the High Court and to do the ITC Clearance after the Rehabilitation Order is granted. It might happen that you pay the
Facilitation fee but we can only bring the Rehabilitation Application in the High Court in a year or two. The time frame all
depends on your Application, Curator and if you’re Creditors claimed from the Estate.
Should it happen that your estate can not be Rehabilitated due to circumstances out of our control the Facilitation
Fee already paid to End Your Debt will not be refundable as it was already distributed to service providers.
High Court Rehabilitation Application R 12 000.
Only once we know that we can proceed with the High Court Rehabilitation Application an Application Fee of R 12 000 is
payable Direct to the Attorney