REHABILITATION

Rehabilitation occurs automatically ten years from the date of sequestration. If you want to be rehabilitated earlier you must apply to the High Court for a rehabilitation order. The High Court will not automatically grant such an order and would consider several factors, such as whether your creditors would be prejudiced, before granting a rehabilitation order.

Subject to complying with certain requirements, a sequestrated or insolvent person can be rehabilitated. Generally this can only happen four years after the date upon which the insolvent’s estate was sequestrated. However, under certain circumstances, this can take place before the four years have elapsed.

The rehabilitation of an insolvent brings the sequestration of his estate to an end, his debts are discharged and he is relieved of all disabilities ensuing from the sequestration. He is enabled to start afresh and re-establish himself, without the embarrassment of creditors pressing him for payment of debts, which he cannot pay.

Offer to Compromise

An insolvent may apply for rehabilitation if he has entered into a compromisation with his creditors and has obtained from the Master a Certificate of Acceptance of the Offer of Compromise which Certificate shows that payment has been made, or security given for payment, of not less than 50 cents in the Rand for every concurrent claim proved or to be proved against the estate.