Rehabilitation
Why apply for a Rehabilitation Order?
If you don't apply for early rehabilitation, you will only be deemed to be automatically rehabilitated after the expiry of 10 years from the date of your sequestration.
An unrehabilitated insolvent is disqualified from being:
- a director of company or managing member of a closed corporation (without the permission of the court);
- an estate agent with a fidelity-fund certificate;
- a registered manufacturer;
- a distributor of liquor;
- an executor of a deceased estate;
- the trustee of a trust (subject the discretion of the Master.)
- an attorney with a fidelity-fund certificate;
- a member of parliament, the National Council of Provinces, or a provincial legislature;
- a business rescue practitioner;
- trustee in an insolvent estate;
- a member of the governing board of the National Credit Regulator; or
- a board member of the Land Bank.
You will be guilty of an offence if you obtain credit in excess of R20 during your insolvency without previously informing the credit provider that you are an insolvent.
You will also not be able to obtain a house bond to finance the purchase of property, even if you can afford to repay the bond.
What are the effect of rehabilitation?
The court may impose certain conditions when granting a rehabilitation, but section 129 of the Insolvency Act, 1936 states the rehabilitation of an insolvent shall have the effect—
- of putting an end to the sequestration;
- of discharging all debts of the insolvent, which were due before the sequestration, provided it was not due to fraud on their part;
- of relieving the insolvent of every disability resulting from the sequestration.
Free Assessment
We offer a free assessment, given the facts of your specific matter, to determine if you are entitled to apply for a rehabilitation order. If you do, we will proceed with a thorough, in-depth investigation and request consent from your trustee(s) to ensure there are no formal objections