How to get Rehabilitated from Insolvency, and How Long Does It Take?
An insolvency lawyer works in various areas of insolvency law. as such an insolvency lawyer should be consulted about the rehabilitation process. When declared insolvent, either sequestration or liquidation follows. In either case, rehabilitation may be an option.
Rehabilitation is the legal process in which, either happen automatically, or by order of the High Court. To be rehabilitated means the insolvent is relieved of the legal implications of being insolvent and put back into legal position as someone who is or was not declared insolvent. there are seven sections in the insolvency act which deals with eight instances in which one can be rehabilitated. Each one of these instances having its own time frame in which rehabilitation can be achieved. As such, it should be noted that one does not have to “first” pay off all his debts to qualify for rehabilitation. Simply put, when a person’s estate is sequestrated, the debt is written off. Legally put, the debt is not written off. It vests in a trustee who must realise the assets and distribute the finances fetched from the sale of the assets amongst the creditors. Either way, none of the creditors can force payment for the old debt. Insolvency lawyers will be able to advise, as their practice is around insolvency law.