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November 25, 2022

Insolvency law permits creditors to receive payment of the debts owing to them by the debtor, in an equal orderly manner.

Insolvency law permits creditors to receive payment of the debts owing to them by the debtor, in an equal

orderly manner. Sequestration is defined as the surrender of an individual’s estate to the High Court

under the governance of the Insolvency Act. Sequestration affords the debtor the opportunity of starting

afresh by absolving the debtor of paying his/her remaining debts once he/she has been rehabilitated.

James and Jane plan to marry in 5 months and have received news that Jane’s estate has been

sequestrated. They are very concerned about their financial position. In order for James and Jane to be

fully aware of the procedure.

Advise James and Jane on the consequences of Sequestration, by discussing the following:

4.1 What consequences result from a sequestration order?

4.2 What are the effects of sequestration for the insolvent?

4.3 What are the effects of sequestration on the insolvents spouse?

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