In this day and age financial hardship is being experienced by many persons. It has recently been statistically proved that a large percentage of the population of South Africa is in arrears with payments due by them to credit providers.

It has become a major task for the normal household to keep heads above water and meet their financial monthly commitments.

More often than not, through no fault or neglect on the part of a person, he / she finds himself / herself in dire financial straits which tend to become worse and worse as time progresses. This may result, ultimately, in a point of no return when the prospects that a person may be able to settle his / her debts in full had become impossible.

We advise clients on what to do under those circumstances – there are a variety of measures that people under financial stress may take to regulate the situation in which they find themselves, such as debt counselling, but also sequestrations which involves an application to the High Court for the estate of a person to be sequestrated. A Court can make an Order on the basis that a person is able to cover the costs of sequestration and is able to prove that a dividend of 11 cent in the Rand would accrue to concurrent creditors. If a person does not have sufficient assets to liquidate to reach the 11 cent in the Rand target, then his / her future income may be pledged to the extent that he / she can financially afford to do so, to meet the 11 cent in the Rand requirement over a period of time (by monthly instalments) – our firm has recently established a precedent in this regard in the High Court, Durban.