Rehabilitation

A person is automatically rehabilitated ten (10) years after the date on which their estate was sequestrated, provided no earlier rehabilitation has been granted.

If rehabilitation is required before the ten-year period, an application may be brought to Court. In such cases, the consent of the Trustee(s) is required, confirming that the estate is capable of rehabilitation and whether any contribution remains outstanding.

Where no Trustee has been appointed, rehabilitation may be sought in terms of section 124(3) of the Insolvency Act as early as six (6) months after the sequestration order, provided that no claims have been proved against the estate. In these circumstances, the consent of the Master of the High Court is required.

Once the necessary consents have been obtained, prescribed administrative steps must be completed, including the publication of statutory notices.

Thereafter, a formal application for Rehabilitation may be lodged with the Court. Where no claims have been proved against the estate, a person may qualify for rehabilitation after six (6) months from the date of sequestration, subject to the Master’s approval.

If claims have been proved against the estate, rehabilitation may generally be applied for twelve (12) months after confirmation of the Liquidation and Distribution Account by the Master. The Master’s consent is required before the rehabilitation process can proceed, unless four (4) years have already elapsed since the date of sequestration. Claims are commonly proved where assets such as property and/or vehicles formed part of the estate.

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