Rehabilitation and the effects thereof

Section 124

Application for rehabilitation


(1) An insolvent who has obtained from the Master the certificate mentioned in subsection (7) of section one hundred and nineteen may apply to the court for an order for his rehabilitation: Provided that he has not less than three weeks before making the application, given, by advertisement in the Gazette notice of his intention to make the application and delivered or posted in a registered letter to the trustee of his estate a copy of that notice: and provided further that the said certificate shows that payment has been made or the security prescribed by subsection (7) of section one hundred and nineteen has been given for the payment of not less than ten shillings for every pound of every claim proved or to be proved against the estate of the insolvent.

[Sub-s. (1) amended by s. 32 (a) of Act No. 16 of 1943 and by s. 41 of Act No. 99 of 1965.]


(2) An insolvent who is not entitled under subsection (1) to apply to the court for his rehabilitation and who has previously given to the Master and to the trustee of his estate in writing and by advertisement in the Gazette not less than six weeks’ notice of his intention to apply to the court for his rehabilitation may so apply—

(a)    after twelve months have elapsed from the confirmation by the Master, of the first trustee’s account in his estate, unless he falls within the provisions of paragraph (b) or (c); or
(b)    after three years have elapsed from such confirmation if his estate has either under this Act or a prior law been sequestrated prior to the sequestration to which he desires to put an end and if he does not fall within the provisions of paragraph (c); or
(c)    after five years have elapsed from the date of his conviction of any fraudulent act in relation to his existing or any previous insolvency or of any offence under section one hundred and thirty-two, one hundred and thirty-three or one hundred and thirty-four of this Act or under any corresponding provision of the Insolvency Act, 1916 (Act No. 32 of 1916):
[Para. (c) amended by s. 32 (b) of Act No. 16 of 1943 and by s. 1 of Act No. 49 of 1996.]
Provided that no application for rehabilitation under this subsection shall be granted before the expiration of a period of four years from the date of sequestration of the estate of the applicant, except upon the recommendation of the Master.


(3) After the expiration of a period of six months as from the sequestration of an estate, the insolvent concerned may apply to the court for his rehabilitation—

(a)    if he has, not less than six weeks before making the application, given to the Master and to the trustee, if any, of his estate notice in writing, and published in the Gazette a notice of his intention to make the application; and
(b)    if, at the time of making the application, no claim has been proved against his estate; and
(c)    if he has not been convicted of an offence mentioned in paragraph (c) of subsection (2); and
(d)    if his estate was not sequestrated under any law prior to the sequestration which he desires to end.
(4) A trustee who has received a notice mentioned in subsection (1), (2), or (3) shall report to the Master any facts which in his opinion would justify the court in refusing, postponing, or qualifying the insolvent’s rehabilitation.
(5) At any time after the confirmation by the Master, of a plan of distribution providing for the payment in full of all claims proved against an insolvent estate, with interest thereon from the date of sequestration, calculated in terms of subsection (2) of section one hundred and three and of all the costs of sequestration, the insolvent concerned may apply to the court for his rehabilitation: Provided that he has not less than three weeks before making the application given notice in writing to the Master and to the trustee of his estate of his intention to make the application.