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Rehabilitation

The insolvency of a party comes to an end when he is rehabilitated. The insolvent is automatically rehabilitated within 10 years from the date of his sequestration. The insolvent may apply to Court within 10 years of his sequestration. He may apply immediately if there has been a composition of not less then 50c in the rand. In all other instances he may apply for rehabilitation of his estate:

  • If he has been sequestrated before, a period which must elapse before he can apply for rehabilitation is 3 years from the date of confirmation of the first account.
  • If he has been convicted of fraud 5 years have elapsed from the date of his conviction.
  • The insolvent may obtain an order of rehabilitation within 4 years provided that the master has recommended that he be rehabilitated.
  • If no claims are proved the insolvent may apply for rehabilitation after 6 months provided he has not been convicted of any fraudulent act in relation to his insolvency and his estate has not been sequestrated before.
  • Payment of all proved claims If the insolvent pays all proved claims with interest after the confirmation by the Master of the plan of distribution he may apply for rehabilitation.


Procedure

The insolvent must give 6 weeks notice of his intention to apply by advertisement in the government Gazette and by written notice to the master and his trustee. He must also provide security to the amount of R500.00 (five hundred Rand) for the payment of the costs of any opposition which the insolvent may be ordered to pay. A substantive application is then launched to the High Court of South Africa wish is complicated and we do not intend to deal with the procedure and content of the application in this website. For further information please contact us.
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