Sequestration in South Africa is the surrendering of your estate, a process instituted by the court to help people that are no longer able to pay their debts due to uncontrollable circumstances, says Insolvensies.
While the sequestration process isn't pleasant, the good news is there are certain assets that are excluded from the process so you (the insolvent) aren't deprived of the basic necessities of life.
The following five assets won't be taken away from you during sequestration process
#1: Compensation for damage or loss arising from defamation or personal injury.
#2: Personal clothing, bedding, household furniture, tools and other means of subsistence.
The Practical Tax Loose Leaf Service says you must keep in mind that the intention is to leave you (the insolvent) with the necessities of life. Any assets that are considered not part of these necessities can still be attached.
For example, your plasma screen TV may not be regarded as being 'necessary for subsistence.'
#3: Any pension or interest in an approved pension or other retirement fund that you may be entitled to.
#4: Any remuneration for work done or services rendered after the date of sequestration.
Bear in mind that the Master of the High Court may require any surplus to be applied towards the payment of debts. But if he doesn't make a specific order to this effect, such remuneration will remain in your hands.
#5: Certain 'protected' policies, such as life policies you took out for your own life or that of your spouse. The catch here is that these policies must have been in force for at least three years.
Knowing the five assets that are excluded from the sequestration process will bring you a step closer to understanding insolvency.
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