Voluntary Surrender With Property

INFORMATION REGARDING VOLUNTARY SURRENDER

The surrendering of your estate is a process instituted by the Courts to help persons that are no longer able to pay their
debts due to circumstances out of their control. After Surrendering Your Estate your debts are deemed to have been
written off. Your creditors are no longer allowed to demand payment from you. From now on your income goes to you
and not to the creditors. It is a fantastic mechanism that exist in our law for anybody with financial problems. It gets one
out of a state of alarm and poverty into a state of calmness and back on the road to creating wealth, putting the focus
where it belongs. Most people hold on too long, trying to flog a dead horse. It is best to learn to stand back and make a
clinical decision instead of an emotional one:

“Get rid of all your debt legally and start over with a clean credit record”

What are the advantages?

  • Most importantly – ALL YOUR DEBT IS WRITTEN OFF – including the debt you are already blacklisted for on ITC (You will not have to pay back any of your creditors and you will be completely debt free).
  • You will no longer be liable towards your creditors, including banks, personal loans, SARS, etc.
  • You will no longer need to communicate with any of your creditors, we will handle all communications.
  • You will be able to stay in your house or rent it out for + another 8 – 10 months before you have to move.
  • After your voluntary surrender your FULL income will remain your own. All garnishee orders against your salary will be stopped.
  • All deductions from your bank account will stop.
  • You do NOT need to appear in court or communicate with your creditors.
  • You will be able to keep your furniture and other movable assets.
  • You will be able to keep your vehicle/s if it is paid up. Please inquire with us about what we can arrange with vehicle/s still under finance in order for you to keep your vehicle/s.
  • After your Voluntary Surrender you will be able to apply for rehabilitation and you will be creditworthy again(see Rehabilitation below).

What are the disadvatages?

  • For your insolvency period, you will not be credit worthy.
  • You may under no circumstances make any new debt.
  • You may not have a current account or a credit card facility.

What will it cost me?

  • Most of the costs will be covered by the Curator from the proceeds of the liquidation (sale) of your estate.
  • A once off administration fee is payable for processing your application and to make an application to the High Court. As soon as we received your Application we can give you a quotation.

Voluntary surrender of estate process

  • You will be required to complete an application form with your personal information as well as information regarding your creditors.
  • Upon receipt of your fully completed application form we will forward your application form to our attorneys. They will do an assessment and we will inform you about your options.
  • Should you want to continue you will sign a Consent form with us, instructing us to continue with your application.
  • Once we received your Consent to continue with the application the nominated Attorney will immediately place an advertisement in the Government Gazette. This advertisement will stop all legal actions against you.
  • We will send you a copy of the advertisement so that you can see that the application is done. You can also use this advertisement to notify your creditors and stop any further action against you.
  • At this stage we will wait for the application to appear in the High Court.
  • After the application is approved in the High Court the Court must appoint a Curator. This can take months.
  • Once the Curator is appointed he will contact you to introduce himself and to inform you when he will have to arrange an auction for the sale of your property.

Rehabilitation (after surrender process is done but not compulsory)

An insolvent can make an application to the High Court to be Rehabilitate. The insolvent can make this application as
soon as the Curator settled the Estate, if there was a property involved in the Sequestration then it can take anything
from 6 months to 3 years for the Curator to Settle the Estate. We find that the banks have no problem granting bonds or
other debt once persons have been rehabilitated. If an insolvent do not apply for a rehabilitation then the insolvent will
be automatically rehabilitated after a period of 10 years. A Rehabilitation Application is again a High Court Application
and is totally separate from the Voluntary Surrender Application. As soon as your Estate is settled contact us to assist
you with the Rehabilitation Application.