Short answer: Yes—you can.
Sequestration is a legal solution designed to help individuals who can no longer meet their financial obligations. And contrary to popular belief, you don’t need to own a house, car, or high-value assets to apply.
Understanding Sequestration With No Assets
If you are feeling overwhelmed by debt and think, “I have nothing to offer—how can sequestration even work for me?” — you are not alone.
Many people find themselves in exactly this position.
Here is what you need to know:
- Sequestration is based on your overall financial picture, not just what you own.
- You must still show that your sequestration will offer a legal benefit to your creditors, usually through a monthly contribution into a trust account.
- Your credit record will be affected for the duration of the process, and you may not access new credit during this time.
- Certain debts, like maintenance payments for children or spouses, remain your responsibility even after sequestration.
What the Court Needs from You
Even in a Sequestration with no assets, you must:
- Prove that you are factually insolvent (your debts exceed your income and assets).
- Commit to a reasonable monthly payment, which is paid into a trust account and distributed by the Trustee.
- Provide a full breakdown of your income, expenses, debts, and financial obligations.
The court will assess:
- Whether sequestration is in the best interest of your creditors, and
- If your payment plan creates a legitimate legal advantage.
Is Sequestration the Right Choice for You?
📌If you are unemployed or earning too little to offer creditors a meaningful return, sequestration may not be the best solution right now.
📌If you are employed or have an income and:
- You are unable to pay your debts.
- Creditors are harassing you.
- And have no valuable assets to sell.
Then sequestration may be your cleanest, most strategic path to a financial reset.
Final Thoughts
Sequestration with no assets is possible in South Africa, but it is not a quick fix.
It is a legal process that requires honesty, planning, and professional guidance.
At Ursula Gouws Consulting, we walk you through every step—from application to court order, and beyond.
If you are unsure whether sequestration with no assets is the right step for you, reach out for a free assessment and consultation.
Let us help you start over with clarity and confidence.
This blog was brought to you by Ursula Gouws.
This blog is for information purposes only and does not constitute legal or financial advice.
If you enjoyed this blog, check out more Debt Talk with Ursula on the Ursula Gouws Consulting Blog, or download our Freebies to help you on your journey to a new financial future.
I am a Debt Strategist. Let me help you find the ideal legal solution for your unique debt situation.
I understand that dealing with financial distress can bring about feelings of guilt and shame, and even depression.
Rest assured – working together, we will get you back on track, so your finances and dignity are fully restored.
If you need help finding the ideal legal solution for your debt, feel free to reach out with the contact form on my Website.
