Insolvency Law
You’re insolvent if you are unable to pay your debts!
Insolvency law in South African law refers to a status of diminished legal capacity imposed by the courts on individual persons, companies, close corporations, partnerships or trusts who are unable to pay their debts, or whose liabilities exceed their assets.
The insolvent’s diminished legal capacity entails deprivation of certain of his important legal capacities and rights, in the interests of protecting other persons, primarily the general body of existing creditors, but also prospective creditors.
Recent articles
Debtor Not Paying? Consider a Liquidation Application - Bad debt is a major issue for many businesses in these hard economic times – not taking robust steps to collect it could be fatal to your own financial position. So if you are being given the run-around by a recalcitrant corporate debtor, take advice on whether an appropriate and cost-effective remedy for you might […]
Business Rescue: Are Your Suretyships Enforceable? A R5.5m Lesson for Directors and Creditors - When a company goes into business rescue, creditors are often in for a beating. So as a creditor, if you had the foresight to cover your position upfront with personal suretyships from individuals with assets (normally the directors of the debtor company), you will no doubt be keen to recoup your losses by calling in […]
Directors at War and the Liquidation Option – A Tale of Sibling Rivalry - A company’s directors have both the power and the duty to manage the company’s affairs for its benefit. When two or more directors are in place, it’s perhaps natural for the occasional disagreement to arise between them. Indeed, regular expression of a variety of different viewpoints and ideas can make for a strong, dynamic board […]
Proving Your Claim in a Liquidation or Sequestration – When You Should, and When You Shouldn’t - Having to write off bad debt is one thing – having to pay in even more money for the privilege is just adding insult to injury. Yet that is exactly the danger you face if one of your debtors is sequestrated or liquidated (we start off by explaining the different terminology) and you prove your claim […]
Your Body Corporate and Arrear Levies: To Sequestrate or Not To Sequestrate? - As a Body Corporate trustee you will understand how important it is to collect arrear levies from defaulting owners. And of course as a section owner you have a personal stake in the process. When normal debt collection processes fail, what do you do?