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Onah Attorneys Inc • Johannesburg
Sequestration & Insolvency – A Lawful Reset, Not a Life Sentence
When debt is mathematically unpayable, the Insolvency Act offers a lawful reset: sequestration writes off the unpayable balance after a distribution to creditors, and rehabilitation restores your status. We advise debtors on voluntary surrender honestly — including when NOT to do it — and act for creditors using compulsory sequestration and liquidation as recovery pressure that unlocks payment.
Call 011 042 8039Free Case AssessmentWhen you need sequestration and insolvency attorneys
Personal debt far beyond income — assessing sequestration
Voluntary surrender applications to the High Court
Creditors bringing compulsory sequestration against debtors
Friendly sequestration scrutiny and defence
Company liquidation — voluntary and by creditors
Rehabilitation applications restoring full legal capacity
Debt review vs sequestration decision advice
Setting aside dispositions and preferences after insolvency
How we handle your matter
Solvency diagnosis
We calculate whether sequestration benefits creditors (the legal test) and you (the practical one) — versus debt review, compromise or negotiation.
Application build
Voluntary surrender requires advertising, statutory notices to creditors and SARS, and a statement of affairs proving advantage to creditors.
High Court application
We move the application in the High Court; on grant, a trustee takes control of the estate and claims are frozen.
Estate administration
We interface with the trustee on asset realisation, exemptions and any contribution — protecting what the Act lets you keep.
Rehabilitation
After the statutory period (or earlier by application with trustee support and full distribution), we restore you: rehabilitation ends insolvency’s restrictions and enables a clean credit rebirth.
Fees — transparent, agreed upfront
Sequestration and rehabilitation applications are fixed-fee including advertising and court costs, quoted upfront. Creditor-side applications are priced against realistic recovery — pressure only makes sense when it pays.
Key legislation:
- Insolvency Act 24 of 1936
- National Credit Act 34 of 2005
- Companies Act 71 of 2008
Frequently asked questions
What is the difference between debt review and sequestration?
Debt review restructures repayments — you still pay everything, longer and cheaper. Sequestration liquidates your estate, distributes to creditors and writes off the shortfall. Deep insolvency often makes sequestration the cheaper exit; marginal cases suit review.
What do I lose if I am sequestrated?
Your estate — assets — vests in a trustee for realisation. You keep tools of trade, essential furniture within limits, and most retirement fund savings. Your salary continues, subject to possible contribution orders.
How long does insolvency last?
Automatic rehabilitation after 10 years, but application-based rehabilitation is possible much earlier — commonly after 4 years, or sooner with full creditor payment or composition.
Can creditors sequestrate me against my will?
Yes — with a liquidated claim of R100+ and an act of insolvency or actual insolvency, plus advantage to creditors. We defend defective applications and negotiate compromises that stop them.
Does sequestration clear all my debts?
Pre-sequestration debts are written off on rehabilitation except a few survivors — maintenance obligations notably. Post-sequestration debts are yours as normal.
Will I ever get credit again?
Yes. After rehabilitation the insolvency listing must be removed; many rehabilitated clients rebuild to bond-approval level within a few years of disciplined records.
Speak to an Attorney Today
Get straight answers about sequestration and insolvency attorneys from a firm that fights to win. First consultation — no obligation, full confidentiality.
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