Debt counselling carries inherent risks. While debt counsellors are generally expected to fulfil their duties diligently and ethically, there exist unethical practitioners within the industry, as is the case in any other field. We will delve into the dangers associated with such unethical conduct and explore remedies to safeguard consumers. The Dangers of Unethical Debt […]
Category: Insolvency
The Differences between Business Rescue and Liquidation
Business rescue and liquidation are both legal processes, but they serve entirely different purposes. While business rescue aims to reorganise and rehabilitate financially distressed companies, preserving their existence as going concerns, liquidation seeks to wind up insolvent companies and distribute their remaining assets to settle claims. Let’s explore these processes further Business Rescue: Liquidation: In […]
The Winding-up (Liquidation) of a Company
Liquidation is a legal procedure that involves winding up a company’s affairs and distributing its assets to creditors and shareholders. Company liquidation in South Africa is primarily governed by the Companies Act of 2008. This legislation provides detailed provisions regarding the liquidation process, the duties and powers of liquidators, the rights of creditors, and shareholders, as […]
Business Rescue – A Practical Guide
In the dynamic world of business, challenges and downturns can unexpectedly loom on the horizon, threatening the very survival of a company. This is where the concept of business rescue comes into play, offering a lifeline for struggling enterprises in South Africa. Whether it’s the impact of economic fluctuations, operational hurdles, or unforeseen circumstances, the […]
Financial Rehabilitation: A New Beginning
The Process: Consequences: Rehabilitation is about starting new again and forgetting the past. It is a good idea to start saving for the legal costs to apply for rehabilitation shortly after the sequestration order to avoid delaying the return to financial independence. Remember, seeking professional legal advice during the financial rehabilitation process is crucial. Each case […]
Sequestration: Legal Requirements, the Process and Consequences
Definition of Sequestration Sequestration is a legal process in which an individual’s assets are placed under the control of a court-appointed trustee. The trustee takes control of the individual’s assets, sells them, and uses the proceeds to pay off the individual’s creditors. It is typically used as a last resort for individuals who are unable to […]