An individual can declare themselves insolvent, or bankrupt, and file for sequestration if their debt has become too great and unmanageable and their liabilities exceed his or her assets. Sequestration is defined as the surrender of an individual's estate to the High Court under the governance of the Insolvency Act.

What happens if I am sequestrated?

Your insolvency comes to an end when you are rehabilitated. In order to get credit again after having been sequestered, you will need to apply for rehabilitation to clear your name as well as restore your credit reputation.

How long do you stay under sequestration?

Sequestration usually lasts for about 5-10 years. A sequestration order will last on your credit report for a period of 5 years, or until the rehabilitation order is granted. The rehabilitation order will appear on the credit report for a further 5 years.