Write off overwhelming debt — and finally sleep again.
Personal sequestration is a legal High Court process that lets you declare yourself insolvent, stop creditor harassment, and have most of your unsecured debt written off. It's not failure — it's the law's way of letting honest people start over.
A software company owner faced personal debt after his company's funding partner withdrew — a common route into sequestration alongside company liquidation. See the software company scenario →
From the day you start, here's what changes.
- Creditor calls and letters stop immediately
- Court action and judgements are halted
- Salary garnishments are lifted
- Interest on debt stops accruing
- You keep your furniture and personal items
100% confidential · No obligation
Individuals we help — across every walk of life.
Professionals, tradespeople, directors made personally liable, retirees carrying old debt. Sequestration isn't about who you are — it's about what the numbers say.
// Johannesburg
// Cape Town
// Nationwide
// Sandton
- The legal way to declare personal insolvency.
- Sequestration with or without property.
- Sequestration isn't about losing everything.
- The relief is real — and it starts immediately.
- How it actually works — step by step.
- Signs sequestration may be your best option.
- The honest trade-offs.
- Watch out for sequestration scams.
- One team to talk to. A network that delivers.
- The questions clients ask most often.
- Real people. Real relief.
- One conversation could change everything.
The legal way to declare personal insolvency.
Personal sequestration is a formal High Court application under the Insolvency Act 24 of 1936. You voluntarily surrender your estate to a court-appointed curator, who deals with your assets and debts. Most unsecured debt is legally written off — credit cards, personal loans, store accounts, supplier accounts, and so on.
It exists for one reason: South African law recognises that some debt situations cannot be solved by paying harder or working longer. Sometimes the only realistic path forward is a legal reset. Sequestration is that reset.
It's a serious step — you become insolvent for at least four years — but for people drowning in debt, it's often the only way to actually stop drowning. The day after sequestration is granted, creditor calls stop, garnishments lift, and you can breathe again.
Sequestration with or without property.
The process is slightly different depending on whether you own immovable property. Both lead to the same outcome — legal debt relief and a fresh start.
Sequestration without property
The standard route for people who rent, live with family, or don't own immovable property. Your household goods stay with you, your salary becomes yours again, and unsecured debt is legally written off.
// WHAT THIS PATH LOOKS LIKE
- A curator-appointed valuator visits and values household goods
- You buy back your furniture via a purchase agreement — nothing is physically removed
- Repayment is a manageable instalment over 18–24 months
- Interest stops accruing on the debt
- Your salary becomes yours — no more deductions
- Vehicle outcome depends on whether instalments are up to date
- Bank account converted to a savings-only account
Sequestration with property
For homeowners whose bond is in trouble or whose property is heading for auction. The court process stops the auction immediately and gives your property a chance to be sold properly — typically for more than a forced auction would yield.
// WHAT THIS PATH LOOKS LIKE
- If property is scheduled for auction, the Gazette publication stops it immediately
- Curator appoints an estate agent to sell the property properly
- Aims for a fair market price — typically better than forced auction
- You may occupy the property until 30 days after the sale
- Bond shortfall is legally written off — bank can't pursue you for it
- Unsecured debt is dealt with as in Path 01
- Household goods and most personal property still protected
Sequestration isn't about losing everything.
A common fear is that the curator will arrive with a truck and take everything you own. That's not how it works. Here's what actually stays with you.
South African law specifically protects the items you need to live a normal life. Your household goods are valued — not removed — and most clients buy them back via a manageable purchase agreement.
Your furniture
The valuator records what you own. Nothing is physically removed. You buy your furniture back through a purchase agreement, paid in manageable instalments over 18–24 months.
Your salary
Your salary becomes yours again. No more garnishments, no more deductions to creditors. The repayment via curator is structured around what you can realistically afford.
Your clothing & personal items
Personal effects, clothing, jewellery for everyday use, items needed for your work — these are all protected. The law specifically excludes the things you need to live and work.
Your job
Your employer is not notified. Sequestration is a private financial matter. You don't need to tell anyone at work. Most clients tell no one beyond their immediate family.
Your vehicle (often)
If your vehicle instalments are up to date, you usually keep the car. The bank has final say, but they typically prefer continued payments over repossession. We discuss this case-by-case.
Your dignity
You do not attend the court hearing. An advocate represents you. The process is private and dignified. No public humiliation, no creditor confrontations, no awkward calls.
The relief is real — and it starts immediately.
Most clients describe the day after the court order as the first proper sleep they've had in months. The phone stops ringing. The post stops arriving. The dread that's been sitting in your chest lifts.
That's not a marketing line. It's what sequestration genuinely does. Here's what changes, in practical terms, from the day the Gazette is published.
How it actually works — step by step.
Sequestration sounds complicated. The actual process is structured, manageable, and you don't have to face creditors or even attend court. Here's how it unfolds.
Free, confidential assessment
You contact us by phone, WhatsApp, or the form on this page. We have a confidential conversation about your debt position, assets, income, and situation. We determine whether sequestration is the right route — and whether it's with or without property.
Statement of debtor's affairs prepared
Our partner attorneys prepare your statement of debtor's affairs — the formal document listing all your debts, assets, income, and household expenses. You sign it before a Commissioner of Oaths.
Lodged with Master of the High Court
The statement is submitted to the Master of the High Court, where it sits for a mandatory 14-day inspection period. SARS is notified, regardless of whether you owe them. All creditors are sent registered letters.
Notice in the Government Gazette
A formal notice of intended sequestration is published in the Government Gazette and a local newspaper. This is the moment legal action against you stops — court cases halt, garnishments lift, creditor calls must cease.
Court hearing — advocate appears for you
The application is heard in the High Court. You don't attend. An advocate represents you and presents the founding affidavit. The court order is typically granted on the day if the application is properly prepared.
Curator appointed
The Master of the High Court appoints a curator to manage your estate. They handle all financial matters going forward — including communication with creditors, asset valuation, and arrangement of any repayment plan.
Valuation and buy-back agreement
A valuator visits your home and assesses household goods. Nothing is removed. You enter a purchase agreement to buy back your furniture, typically paid over 18–24 months. The amount is structured around what you can realistically afford.
Insolvent period and fresh start
You remain legally insolvent for a minimum of 4 years. During this time, you can work, earn, and live normally — you just can't open new credit. After this period, you can apply for rehabilitation to fully restore your financial rights.
Signs sequestration may be your best option.
Most people delay sequestration because it feels like giving up. It's the opposite — it's the law's way of letting you stop drowning. If any of these apply to you, it's worth a conversation.
Debt exceeds annual income
Total debt is more than what you earn in a year — and there's no realistic way to pay it down within a decade. Debt review and refinancing won't fix this; sequestration might.
Salary garnishment in place
A court has ordered deductions from your salary to a creditor. Each month you take home less than you need. Sequestration lifts the garnishment immediately.
Avoiding the phone and post
You don't answer unknown numbers. You leave letters unopened. The stress is affecting your health, sleep, and family relationships. This is what sequestration ends.
Multiple court summonses
Two or more creditors have started legal proceedings. The Sheriff has either visited or is about to. Sequestration halts all of this — no more legal pursuit.
Property auction scheduled
Your home is heading for a bond shortfall auction. The bank wants their money. Sequestration with property stops the auction and gets your property sold for a better price.
Business surety called in
You signed personal surety for a business that's been liquidated or failed. The creditor is now pursuing you personally. Sequestration is often the right follow-on step — the training company scenario shows the full arc from company liquidation through sequestration to rehabilitation and a fresh start.
The honest trade-offs.
Sequestration brings real relief — but it's also a serious legal step with real consequences. Here's the honest picture of what changes for the next four years.
Your credit profile
You are legally insolvent for a minimum of 4 years. During this period, you cannot open new credit accounts — no new loans, no new credit cards, no new store accounts. For most clients drowning in debt, this is a relief, not a hardship.
Your bank account
Your bank accounts are limited to a savings account only — no cheque account, no overdraft, no credit card. You can still receive your salary, pay bills, and live normally. You just can't borrow.
Your job
Your employer is not notified. Sequestration is a private financial matter. Most professions are unaffected, though a few specific roles (e.g. financial services, directorship of public companies) may have restrictions.
Your family and social life
Nothing changes here. Sequestration is private. The valuator visit is the only outside party to see your home. Your family decides who, if anyone, to tell. Most clients tell no one beyond their spouse.
Your future
After the insolvent period ends (typically 4 years), you can apply for rehabilitation — the legal process that restores your full financial rights and clears your credit bureau records. From there, you rebuild credit and resume normal financial life.
The repayment
You repay a portion of debt over 18–24 months — far less than the original total, structured around what you can afford. The rest is legally written off. Interest stops. The hole closes.
Watch out for sequestration scams.
The sequestration industry attracts unscrupulous firms because clients are desperate and the average person doesn't know how the process works. Some firms charge for applications that are legally impossible — taking your money knowing the application can never succeed.
Once the paperwork is signed, the fees are typically non-refundable. The client discovers months later that the application was rejected, never lodged properly, or that they didn't legally qualify in the first place.
What to watch for
- Promises that sound too good to be true — "keep your house and clear all debt"
- Demands for upfront payment without a proper assessment first
- Vague answers to questions about who actually handles the court work
- No clear written quote or contract before money changes hands
- Pressure to sign immediately without time to think
- Refusal to give you the name of the attorney who'll handle the court application
How we work differently: Free assessment first. We tell you straight if you don't qualify — and we don't take your money if the application won't succeed. The court work is handled by registered attorneys in our partner network whose names and credentials you can verify.
One team to talk to. A network that delivers.
The Debt Company is your single point of contact through every step. We listen, assess, advise, and match you to the right specialist in our partner network — saving you the time and risk of choosing wrong.
The court application, curator communication, and formal insolvency process are carried out by qualified attorneys and insolvency practitioners registered with the Master of the High Court.
You get expert execution. You only deal with one team.
Backed by 30+ years of partner experience.
Our network has guided over 3,900 clients through sequestration, liquidation, and rehabilitation across South Africa.
Every specialist in the network is vetted for credentials, professional standing, and proven track record — so you can trust the hands your case is in.
And throughout, The Debt Company stays involved — coordinating, communicating, and making sure your matter moves forward.
The questions clients ask most often.
Quick answers to what's on every debtor's mind before they pick up the phone.
No. An advocate appears in the High Court on your behalf. You do not attend the hearing personally. The court order is typically granted on the day if the application is properly prepared. The process is private and dignified — no public exposure.
No. A valuator visits your home and assesses household goods, but nothing is physically removed. You enter a purchase agreement to buy your furniture back — typically paid in manageable instalments over 18–24 months. Your furniture stays where it is throughout.
If your vehicle is on finance and your instalments are up to date, you usually keep the car. The bank has final say — but most banks prefer continued payments over repossession. If the vehicle is paid off, it forms part of the estate and may need to be sold. We assess this case by case during your free consultation.
No. Sequestration is a private financial matter. Your employer is not notified. Most professions are unaffected. A few specific roles (e.g. financial services regulated under FAIS, directorship of certain public companies, attorneys) may have restrictions — we check this during your assessment.
SARS is notified as part of the sequestration process — even if you don't owe them. If you do owe SARS, the debt forms part of the insolvent estate and is dealt with by the curator. SARS is treated as a preferent creditor. Most personal income tax debt is dealt with through this process.
It depends on your marital regime. If you're married out of community of property with antenuptial contract, your spouse is generally unaffected. If you're married in community of property, both spouses are sequestrated together. If married out of community but ANC excluding accrual, this is also generally separate. We discuss this in detail during your consultation.
A minimum of 4 years from the date of sequestration. After this period, you can apply for rehabilitation — the legal process that fully restores your financial rights and clears your credit bureau records. Some exceptional cases allow earlier rehabilitation, but 4 years is the standard, safest route.
It depends on your income, assets, and total debt. The repayment is structured by the curator based on what you can realistically afford, typically paid over 18–24 months. It is always far less than the original debt — and the rest is legally written off. Interest stops accruing the day sequestration begins, so the amount stops growing.
Real people. Real relief.
Every client comes to us at the lowest financial point of their life. Here's what they say after.
I contacted the company, and they helped me right away. I'm now in the sequestration process and couldn't ask for better support. Super stars!
John
Business owner, Cape Town
I owned a software company, and when investors withdrew, I was left with debt. The team handled my sequestration and liquidation professionally — I didn't worry about court cases or creditors.
Jacobus
Business owner, Cape Town
Thanks to the team, I'm finally debt-free. The process was smooth, fast, and reassuring.
Anthony
Employee, Gauteng
About our service
The Debt Company is a consultation and client guidance service. The formal legal work — including the High Court application, curator communication, and the insolvency process — is carried out by qualified attorneys and insolvency practitioners registered with the Master of the High Court. Our role is to assess your situation, match you to the right specialist within our trusted partner network, and guide you through every step. Each sequestration case is unique — the information on this page provides general guidance, but specific outcomes depend on your circumstances, income, assets, and marital regime. Free, no-obligation consultation available. Please note: every case — from liquidation to sequestration to rehabilitation — is unique, and the right course of action depends entirely on your individual circumstances. The information on this website is provided for general guidance only and may become outdated as laws, regulations, and procedures change without notice. It should not be relied upon as legal or financial advice. Please contact us first so we can assess your specific situation and guide you properly before you act on anything you read here.
One conversation could change everything.
Most clients tell us afterward they wish they'd called months earlier. The first consultation is free, completely confidential, and gives you absolute clarity about whether sequestration is the right route for your situation.