Let’s be honest — there are a few things you need to know.
Sequestration is a powerful way to get out of debt, but it comes with a few temporary restrictions.
Here is what you need to consider before making your decision:
⚠️ 1. You won’t be able to get credit.
Once you are sequestrated, you can’t apply for loans, credit cards, or store accounts until you are officially rehabilitated.
That is the point of this process — to reset your finances without falling back into the same debt trap.
⚠️ 2. You can’t be a company director.
While sequestrated, you are not allowed to be a company’s registered director. If you already are, you must step down during the process. Once you are rehabilitated, this restriction falls away.
⚠️ 3. You will lose your bonded property.
If you own a home with a bond, it will form part of the estate handed over to the Trustee.
The sale of the property is used to help settle your debt.
This loss will be emotional, but it is part of what clears your name legally.
⚠️ 4. You will lose your vehicle if it is financed.
If your car is financed through the bank (Hire Purchase), it will also be included in the sequestration.
Fully paid-off vehicles may be protected, depending on your situation.
⚠️ 5. You can’t own assets until you are rehabilitated.
Any new assets you acquire are technically part of your insolvent estate during sequestration.
Once you are rehabilitated, you are free to own assets again — including a car, home, or business.
⚠️ 6. Your bank accounts will be limited to a savings account.
You may not have a cheque account or a credit card facility. You may under no circumstances engage in any debt arrangements.
The bottom line?
These limitations are temporary. The relief from crippling debt, creditors, and relentless pressure is permanent.
And when you are ready, rehabilitation clears your record and gives you complete financial freedom again.
Understanding your options does not have to feel overwhelming.
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This blog was written by Ursula Gouws, Debt Strategist and Registered Debt Counsellor (NCRDC3783).
Important: The information contained in this blog is provided for general information purposes only and should not be regarded as legal, financial or professional advice.
Every financial situation is unique, and the legal solution that is right for one person may not be appropriate for another.
At Ursula Gouws Consulting, we believe that there is no one-size-fits-all solution to debt.
Whether Personal Sequestration, Business Liquidation, Debt Counselling, Debt Review Removal, or Coaching is the right option depends entirely on your individual circumstances.
We understand that financial difficulties often bring feelings of stress, uncertainty and even embarrassment.
You do not have to face those challenges alone.
Together, we will identify the legal solution that best fits your circumstances and help you take the next step towards rebuilding your financial future.
We are here to help.
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