What is rehabilitation?
The Insolvency Act provides for a legal process to restore your credit worthiness by means of a rehabilitation application.
An application for rehabilitation is made to the High Court which has jurisdiction. This typically refers to the High Court in which the sequestration was granted.
A rehabilitation application can either be done 6 (six) months after sequestration has lapsed if no claim has been lodged against your insolvent estate by any creditors, alternatively after 4 (four) years has lapsed. In both circumstances the L&D must have been lodged and proven by the Master of Higher Court.
We also need to confirm, with the curator who was appointed to attend to your insolvent estate, whether there was any contribution levied against your estate or not. This means whether your estate generated enough funds to pay for the administration costs of the estate. This varies from estate to estate. In terms of the Insolvency Act, this contribution needs to be paid before the court will allow for the rehabilitation to be granted.
The process takes about 7 (seven) weeks to finalise.
Once the application has been granted, our offices can further assist our clients with ITC clearances and clear credit profiles
Advantages
1. You will be able to obtain and administrate a trust account
2. You will be able to act as director of company or as a member of close cooperation
3. You will be able to obtain credit and rebuild your new credit record
4. You have a “clean” credit record
Liquidation is a legal process whereby a liquidator is appointed by the Master of the High Court to “wind up” the affairs of a company or close corporation. The liquidation process is entrenched in our Companies Act and regulated by the Insolvency Act.
The liquidations are set and managed by the Master of the High Court. At the end of a liquidation process the company or close corporation will cease to exist. The purpose of the liquidation is to ensure the company’s or close corporation’s affairs are dealt with properly.
A company or close corporation is insolvent when the business liabilities exceed their assets. The legal test however, is whether the business is able to pay its debts when they are due. In liquidations you do not need cash or assets to proceed with the liquidation process, as the company or close corporation is insolvent and thus must cease trading.
The business is seen as a separate legal entity in our law, thus shareholders, directors or members cannot be held liable for the business debt unless the shareholder, director or member put up personal security or suretyship.
1. Voluntary liquidation
This proses is applicable where the directors are of the opinion that the company is unable to fulfil the obligations to its creditors and that the liabilities exceeds the assets.
The directors probably signed suretyship, in their personal capacity for all credit obtained by the company. This could have an effect on their personal estate. Also consider the lease agreement of the premises etc. to establish the liabilities of the directors. It is advisable to consult with an expert in this field as the circumstance differ from each and every company.
2. Creditors liquidation
This is a proses where one of the creditors may approach the High court, with an application, seeking the liquidation of the company in debt. This could be a costly proses and the applicant company must make sure that they are not liquidating an empty shell, as it could be costly and they might end up paying the contribution in the liquidated companies estate.
This is also a specialized field and it would be advisable to seek provisional assistance before seeking this remedy
Negative details on your credit report are unfortunate from your past financial mistakes. Or, in some cases, the mistake isn't yours, but a business or credit bureau is to blame for credit report errors. We will also do an assessment on all credit to determine whether credit were reckless or unlawful. Either way, we will work with you to have unfavourable removed from your credit report.
Removing negative information will help you achieve a better credit score. A better credit report is also the key to getting approved for credit and to getting good interest rates on the accounts that you’re approved for.
We will assist in: