sequestration rehabilitation

sequestration rehabilitation

Sequestration rehabilitation

If you have been sequestrated and is insolvent you may be able to apply for sequestration rehabilitation

We have been assisting consumers since 1999 with rehabilitation after sequestration applications all over South Africa

Please read through our website to find out more about the cost of rehabilitation, the process of rehabilitation and when you may apply for rehabilitation after sequestration

We will consult you telephonically for free on rehabilitation applications

“Quick, easy and very competitive fees. Highly recommended”

James Whittfield, Randburg

“Very informative consultations that are FREE. Best legal service received so far”

Cindy Jefferson, Polokwane

“Dankie vir julle vinnige en eerlike diens. Ek is gerehabiliteer en kan skoon oor begin”

Jacques Viljoen, Kroonstad

“No stress rehabilitation application done in a matter of weeks”

Mandy Pierce, Cape Town

“Bets advice received and they had a payment plan”

Thebogho Malabeni, Mamelodi

Contact us

What is rehabilitation

Rehabilitation after sequestration is a legal process which happens by order of the High Court of South Africa, whereby the Insolvent (applicant) is declared financially fit and proper again by the High Court. When a person has been sequestrated, he/she can apply for rehabilitation. Once rehabilitated after sequestration, the sequestration comes to an end and the insolvent can start afresh.

Rehabilitation after sequestration is not compulsory after you have been sequestrated but in certain circumstances an Insolvent would like his/her credit worthiness to be re- instated as quickly as possible for example when you want to buy a property or when you need your name to be in good faith for business purposes. In terms of the Insolvency Act, Act 24 of 1936, a person is automatically rehabilitated after a period of 10 years has expired from date of sequestration that means that should you not apply for a Rehabilitation you will automatically be Rehabilitation after sequestration after 10 years

When may an insolvent apply for rehabilitation after sequestration?

Six months

– After six months after the sequestration order has been granted subject thereto that the
full contribution amount has been paid AND no claims have been proven against the
estate, provided the insolvent has not been convicted of certain offences; and has not
previously been sequestrated you can apply for rehabilitation after sequestration

– It should however be noted that a report from the Master is required supporting the
rehabilitation which is extremely difficult to obtain.

Twelve months

– If the insolvent has not been convicted of certain offences; and has not previously been
sequestrated, he may apply for rehabilitation after 12 months have elapsed from the date
of the Master’s confirmation of the first trustee’s account in the estate;

– It should however be noted that it takes approximately 3-4 years for the account to be

Ten years

– After 10 years have expired an insolvent is deemed to be rehabilitated unless a court
orders otherwise upon the application of an interested person. Such an application must be
made within the ten year period.

sequestration rehabilitation costs

sequestration rehabilitation costs

Cost for  sequestration rehabilitation is R12 000

Options as follow:
1. Deposit of R 6000 – Balance 2 weeks before the court date R 6000. Total R12000

2. Deposit of R 2000 – R 1800 per month for 6 months Rehabilitation cost on option 2Total R 12 800) or

3. Instalments R 2000 for 3 months (until R6000) – then we start with rehabilitation and client continue with R1200 for 6 months. (Total R 13 200)

4. Guardian fund money
In the case of when the Curator informed us of Guardian fund money available we
will claim R 12 000 from the outstanding amount.


you are welcome to look at the above options for payment thereof.

Please take note if you are making use of the instalment options and you do not comply with our arrangements we will load you as a “non-payer” on ITC.

Please contact us for further information.

sequestration rehabilitation process

When you intend to start the sequestration rehabilitation process, we receive the relevant documents a notice is published in the Government Gazette and an affidavit is drafted for the clients signature before a Commissioner of Oaths.

Next a report is requested from the curator as well as from the Master of the High Court, which gives permission for a rehabilitation application to be lodged. The report from the Master can take anything from two weeks to three months to obtain and is necessary before we can proceed with the application.

The Hearing: On the court date an Advocate will present the application on your behalf. There is no need for you to attend the court hearing in person. We will notify you of the outcome. A court order will be granted within 10 to 15 days.

The sequestration rehabilitation process to clear your name:

As soon as we receive the court order, we send the order to ITC (Trans-Union), Compuscan, Experian, XDS. We also send a letter with the rehabilitation order, sequestration order, certified copy of clients Identity document and the statement of debtor’s affairs (list of creditors).

ITC takes approximately 21 days to update their records. We have had instances where we phoned ITC within the 21 day period, where they stated that they have
not received any documents, but after the 21 days have lapsed, it was clearly updated on the system. The conclusion is that should the documentation be received by ITC there is no acknowledgement thereof on their system or that they are busy processing the information, but after the 21 days have lapsed, the information has been updated.

We have experienced that ITC’s rules and requirements are sometimes adapted, for example:
– Initially they only required the court order for the rehabilitation to remove all records.
– Later we had to call to receive a reference nr before faxing the rehabilitation order.
– Then it was stated we were not allowed to call as we were a “third party” and instead they waited for the High Court to forward the order before they could take any action.
– At another stage we sent the court order through and ITC removed the entire credit record leaving no records whatsoever of previous debt or the sequestration.
– Currently there are six documents that we need to send through and we have to wait 21 days.
– Some of our clients have reported that within the 21 days, ITC confirmed with a text message that their credit record had been cleared. However another client received a similar text message but still had a record remaining on their credit record.
– Some institutions say that their records may not be removed from ITC until two years after it was placed. In such instances there may be an additional fee payable to have it removed by an independent agency.

We constantly struggle with ITC as their policy is not consistent, and they should comply with the new Credit Act regulations. Please be assured that we will do all in our power to have our client’s name restored.


We would like to encourage you that there is hope after Rehabilitation!! We applied for rehabilitation on behalf of a client in September 2009. Subsequently the client applied for a loan to purchase a property. Three banks declined the application but a fourth bank granted the loan. Their motivation was that they could see that the
client was able to handle her affairs responsibly. The bank said that she was completely rehabilitated and able to make a positive contribution to the economy.