Voluntary Distribution

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.