Top Sequestration Law Firm in Johannesburg

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Otrebski Sequestration Law Attorneys

What Is the Meaning of Sequestration in South African Law?

Sequestration is the formal legal process where an individual or partnership declares insolvency and their estate is surrendered to the court. A trustee is appointed to sell assets and distribute the proceeds among creditors in a strict order of legal priority.

South African sequestration law is governed by:

Debt can quickly become overwhelming, but sequestration provides a legal solution to restructure your financial situation. At Otrebski Attorneys, we guide individuals and partnerships through the sequestration process with expertise, compassion, and clarity — ensuring compliance with South African law while protecting your best interests. The sequestration process allows debtors to gain relief from unmanageable debt while ensuring creditors receive equitable repayment.

OUR Sequestration Law Services

Otrebski Attorneys Services in Sequestration Matters include:

Assessing your financial position and advising on whether sequestration is the right option.
Preparing and filing voluntary sequestration applications.
Defending clients against compulsory sequestration applications brought by creditors.
Representing you in court to protect your rights.
Guiding you through rehabilitation to restore your financial independence.
Advising on asset protection and exemptions during the sequestration process.
Negotiating with trustees and creditors to secure favourable outcomes.
Providing strategic advice on alternatives to sequestration, such as debt restructuring or business rescue.

Sequestration IN SOUTH AFRICA

Types of Sequestration in South Africa

In South Africa, sequestration can take place in two main ways: voluntary sequestration and compulsory sequestration. Our sequestration attorneys assist clients with both types of sequestration, providing clear guidance and strong representation to protect your rights and help you move toward financial stability.

Voluntary Sequestration

Voluntary sequestration is initiated by the debtor who acknowledges being insolvent and unable to meet financial obligations. This route allows individuals to take a proactive approach by applying to court to surrender their estate. It provides a structured and legally recognised way to deal with overwhelming debt, offering a quicker resolution and more control over the process compared to creditor-driven actions.

Compulsory Sequestration

Compulsory sequestration, on the other hand, is initiated by creditors through an application to court. This typically occurs when debts remain unpaid, and creditors seek to recover what is owed by having the debtor declared insolvent. The court then decides whether sequestration is justified and, if so, appoints a trustee to manage the debtor’s estate and distribute assets to creditors.

What Happens During Sequestration in South Africa?

Sequestration is the legal process through which an individual’s estate is placed under the control of a trustee because they are unable to pay outstanding debts. Once a sequestration order is granted by the court, the trustee takes control of the debtor’s assets, identifies and realises them, and distributes the proceeds to creditors according to the legal priority set out in the Insolvency Act. The process ensures that debts are settled fairly while providing a structured framework for the debtor to resolve their financial difficulties. Certain assets may be exempt, and the trustee also investigates the debtor’s financial conduct to protect creditors’ interests.

When Should You Consider Sequestration?

Sequestration should be considered when you are no longer able to meet your debt obligations and creditors begin taking legal action, such as obtaining judgments, garnishee orders, or attaching assets. It may also be necessary if your total liabilities exceed your assets, leaving little to no chance of financial recovery. Continuing to trade under these circumstances can worsen your financial position, making sequestration a practical option to resolve debt and protect your long-term interests.

Step-by-Step Legal Process of Sequestration in South Africa

The sequestration process begins when either a debtor or a creditor files a sequestration application with the High Court. The court then reviews the evidence of insolvency and considers whether sequestration would benefit the creditors. If satisfied, the court may issue a provisional sequestration order, temporarily placing the debtor’s estate under the control of a trustee. After further hearings and consideration, a final sequestration order is granted, officially appointing the trustee to manage and administer the estate. The trustee identifies, realises, and sells the debtor’s assets, distributing the proceeds to creditors according to the legal priority set out in the Insolvency Act. Over time, the debtor may apply for rehabilitation, which, if granted, restores their full financial status and legal capacity.

How Long Does Sequestration Last in South Africa?

The duration of sequestration in South Africa typically ranges from 9 to 24 months, but it can vary depending on the complexity of the debtor’s estate, the number and type of assets involved, and how quickly they can be identified, realised, and distributed to creditors. Other factors, such as disputes with creditors, legal challenges, or investigations into financial conduct, can also extend the process. Once all assets have been properly administered and debts settled, the court may grant rehabilitation, restoring the debtor’s financial independence and legal capacity.

Our Client Process

Starting Your Legal Journey With Otrebski Sequestration Law Attorneys

We understand that sequestration matters are often complex, high-stakes, and emotionally challenging. That’s why we follow a clear, structured, and results-driven process to guide you through every step, ensuring compliance with South African law while protecting your financial and legal interests.

Fill in your details below to contact us for professional guidance, expert advice, and effective solutions in voluntary or compulsory sequestration, dispute resolution, and managing all aspects of personal insolvency.

Consult With A Top Sequestration Law Firm In Johannesburg

Our step-by-step approach ensures that you feel supported from your first consultation to the final resolution.

Otrebski Attorneys combines extensive experience, in-depth legal knowledge, and years of proven practice.