This is the most drastic debt-relief measure and is
suitable for those consumers whose assets exceed their liabilities. It
is a formal process which involves a court application in which it must
be shown that the consumer has sufficient assets which can be realized
and in order to pay creditors at least 20c/R. Although it is a drastic
measure, it is a remedy which clears the debt of a consumer without the
actual balances due to the creditors being paid. The consumer may
thereafter and within a reasonable time period [usually at least four
years from date of sequestration] apply to be rehabilitated in order to
re-enter the economic market.
There are advantages of
sequestration but there are also consequences which must be discussed
with the consumer.