What is a Voluntary Surrender (Sequestration)?

In simple terms it is a legal process that is available to an individual who is hopelessly overindebted and who has resorted to all other lawful measures to get himself out of debt but is still struggling.

By way of example, a Consumer owes a total amount of R400 000.00 in respect of non asset based finance i.e Credit Cards, Overdraft, loans etc. He cannot pay the restructured amount requested by his Debt Counsellor. Or he can pay the restructured instalment but wants a “quick fix” and “wants to get done” with his accounts.

What happens is that he approaches an Attorney (our IN HOUSE ATTORNEY will assist) and instructs them to apply to the High Court “to surrender” his Estate. In essence he tells the Court by way of a properly drafted and motivated Application on Affidavit, that he can only offer to pay his Creditors between 15 to 20% of the total amount owing to his Creditors. In the above example he will pay about R50 000.


  • Your debt is settled once and for all. No Creditor “can come back” to you for the balance owing.
  • Your Creditors very rarely come to Court to oppose the Application.
  • It is a relatively cheap procedure and will save you “a ton of money“, if one takes into account the amount that is written off and the interest that you would save.
  • Your assets like your personal effects fridge, stove, furniture is not sold off by your Trustee who “handles” your accounts.
  • Your salary is not in any way affected and there are no deductions therefrom save for some very rare instances.


  • You will not be able to apply for finance to any Creditor for 4 years. In some cases you may approach the Court after 30 months for your “rehabilitation”. Once rehabilitated you can apply for Credit.
  • If both you and your spouse are married in Community Of Property both of your estates will be placed under surrender.
  • It is a procedure not available to you if you have a Bond or a car as the Trustee will then proceed to sell the house or car even if the assets are still under finance. We can however discuss options available to you to “get around” this problem.


  1. An advert is published in THE TIMES newspaper on a Friday and in the Government Gazette notifying the public of your intention. The paper and in particular the legal section is rarely read by ordinary people. Have no fear that everybody gets to know that you have applied for voluntary surrender which in any event is not understood by people.
  2. A statement of your financial affairs is submitted to the Master’ of The High Court.
  3. SARS is notified.
  4. Your Creditors are notified.
  5. A comprehensive Application, on Affidavit, setting out in detail the reasons for your financial problems is prepared and stamped in the High Court.
  6. On a specific date, an Advocate appears in the High Court before a judge who then grants a final order. You do not appear in Court.
  7. You and the Master are given a copy of the Court Order.
  8. A trustee is then appointed to take over your accounts and deal with your Creditors. He will call you to a meeting which is very informal.
  9. He then prepares an Accounting which he presents to the Master.

We also do Liquidations of Companies!

Some of the Creditors & Attorneys we deal with

Contact Details


  • 381 Burger Street, PIETERMARITZBURG, 3201


  • 11 Walnut Rd, DURBAN, 4001

Registered with the NCR - National Credit Regulator
Registration Number: DC425