
Rehabilitation
What does rehabilitation mean? The insolvency of a person comes to an end when an insolvent person is rehabilitated. The rehabilitation process allows a person who has been sequestrated to make a fresh start and relieves the insolvent from all debts which had arisen before the sequestration of the insolvent’s estate.
The danger of contribution in Liquidations and/or Sequestrations
28 February 2021 | Stacy Saffy When an insolvent company or individual’s assets are sold to pay its debts, and it becomes apparent that the value of the assets is not enough to settle the administration costs of the insolvent estate, thus creating a shortfall in the estate, the creditors of that insolvent estate who proved claims against the estate will be held liable to contribute to the...
Types of insolvency
22 December 2020 | Stacy Saffy Factual Insolvency means that a debtor’s liabilities exceeds his or her assets and results in the inability to pay his or her debts. Commercial insolvency is a state of illiquidity where there is an inability to pay debts even though the assets may exceed its liabilities. The only difference between these two terms is whether the...
Business rescue & suretyship in 2020
7 July 2020 | Stacy Saffy Due to the COVID-19 pandemic, there is no doubt that the pandemic will leave an enduring impact on businesses worldwide. The quick spread of the illness, which forced South Africa to impose a nationwide lockdown has forced businesses to take a more practical approach to minimise losses and ensure their survival. The success or failure of these...
What you don’t know about business rescue
Business rescue can be defined as “the rehabilitation of a company that is financially distressed or is experiencing financial problems”. When a company is financially distressed it is reasonably unlikely that: ○ the company is going to pay all of its debts as they become due and payable within half a year; or ○ the company will become insolvent within half a year.