What is the difference between sequestration, administration and debt counselling?
With a sequestration, your assets get liquidated (sold) and the proceeds (if any) go to your creditors. It is an expensive legal process. If debt counselling cannot resolve your financial situation, this may be an option to consider. Administration is an expensive legal process, by which you repay your creditors. It is only available if your debt do not exceed R50 000, in total. Debt counselling, is the third way to resolve your financial difficulties. It is governed by the New Credit Act, and aims to restore your financial well being, without your assets being repossessed or you being blacklisted.
