# Regulatory Compliance Category > National Credit Act Forum >  The benefits of sequestration?

## Dave A

I've kicked this thread off here because.. well, it starts with spam. Let's see where the discussion goes though. It might yet prove better to get this out in the open.

I received this email today which got automatically (and quite rightfully) sent to my spam box. However, it does give pause for thought.


*Voluntary Sequestration Benefits*

Start with a new life debt free. Your salary is your salary and you can immediately start saving for your future again All pension money can never be touched. You can potentially still keep your car and property based on certain strict criteria.
*
The Process*

Sequestration is a normal High Court application under the Insolvency act. Any person that can prove that their debt is more than their assets can apply for sequestration. The qualifying criteria is simply that we need to be able to prove that there will be value to the Creditors to the amount of 20 cents for every rand that I owe. Can we prove that to the Court, the application will be granted.

What is the impact of this?
You stop paying all debts immediately, including Receiver of revenueYou will still stay in your property for at least the medium term for free before it will be sold. We will also give you an option to keep your property should you qualify.You will still be driving your car for at least the medium term for free before it will be sold.After three months a Curator will be appointed by the Master of the Court. In about 6 months' time on average the realisation of assets will start.At worst you will have to buy your furniture at nominal valueYour salary is your salary and no one can take that away from youAll Garnishees get cancelledYou will rehabilitate after 3.5 years.

Once rehabilitated you will form part of the main stream Financial activities as before the sequestration, except you will be debt free. All major banks approve Bonds based on normal criteria after 1 year of rehabilitation.

In life we walk around with misunderstood perceptions and baggage that we carry along with us. We think we deserve to suffer for the rest of our lives. No! there is always help out there!

All you need to do is give us the opportunity to talk to you. This is but one of the process to assist you with, but the one least understood.

We would welcome the opportunity to talk to you, please send an email and we will contact you to discuss this and many other options.


Message sent by Samantha <samantha@flipcast.co.za> just in case anyone here is tempted. But back to the point of real interest here -

I've been watching (and occasionally assisting) an acquaintance try to dig her way out of the brown stuff for quite a while now using the much vaunted over-indebted protections of the NCA - pretty much ever since the NCA was launched in fact.

It's been painful, and worst of all, there still seems to be no end in sight.

If what dear Samantha says is true - said acquaintance would have been in clover some years ago already!

It begs the question - what is the better option for the over-indebted?
Go the debt counselling route per the NCA, or apply for voluntary sequestration?

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## flaker

One reason why i think is that the costs associated with voluntary sequestration stops many people going this route , as the costs are borne by the person wanting sequestration & which moneys he/she does not have.

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## sterne.law@gmail.com

It is the costs, normally wanted upfront!
Also if the individual applies  they must show it WILL be beneficial. A creditor applying only needs to show possibility.
Thats whsre the friendly sequestration  comes in.
You normally need assets to sequestration, to show benefit.
If you earn a salary, the court may prefer to determine a payment plan.
Sequestration is not a get out of jail freeware (but can be abused). It is however a viable solution, to start again. Many don't because of emotional feelings.

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Citizen X (24-Apr-14)

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## Dave A

*Moved out of member only content*

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## King8V

Ok so one needs to have assests to be able to apply for voluntary sequestration?

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