Will I loose my assets if I file for bankruptcy?
FAQs - Assets
Written by Rohan Lamprecht   

Once your estate is sequestrated, ownership of your assets passes to the Master of the High Court, and after the appointment of a Trustee (a person appointed by the Master of the High Court to administer your insolvent estate); ownership passes to the Trustee, even though you still have possession of the assets.

We will tend to any negotiations on your behalf, for the re-purchase of your assets from your Trustee. This usually only includes your household furniture, personal belongings and any other unsecured assets . You will be entitled to pay the purchase price in monthly installments, over a period of several months, usually at 0% interest and no collection commission or hidden costs of any kind.

If the period exceeds 10 months, interest may be charged on the outstanding balance at 1.29% per month (15.5% per year). You will retain possession of these assets throughout the re-purchase period. Thus you will retain possession of these assets, but will lose ownership hereof for the duration of the repurchase period, after which you will once again be the legal and rightful owner thereof.

Provided that you ad hear to the terms and conditions of the re-purchase agreement, we will be able to finance your repurchase, for an amount not exceeding R25,000 after a minimum of 10 months has passed since the appointment of your Trustee. To the best of our knowledge Dionne Lamprecht Attorneys, in conjunction with Bankruptcy24, is the first and only firm to give our clients this revolutionary option, which speeds up the sequestration process and ultimately enables our insolvent clients to rehabilitate much sooner than would otherwise be possible. The only limitation will be your re-payment ability.

Please take note that we do a complete financial analysis for each client prior to the High Court application, to ensure that you know exactly what you are letting yourself into, and how much your monthly repayment will be.

Motor Vehicles / Motor Cars

If your motor vehicle has been paid in full (unencumbered), the vehicle can be included in the above mentioned re-purchase transaction. Unfortunately any vehicles still under a finance agreement will have to be returned to the financial institution that financed it. Usually these vehicles are only returned once the Trustee has been appointed.

Fixed Property / Houses

The Trustee will eventually realise property such as residential houses via public auction or private sale. This process takes several months and for the duration of this period, most Trustees will allow you to occupy the property either free of charge or at minimal occupational rent, provided that the property is kept in a good condition. This allows the Trustee to save on the costs of appointing a guard / caretaker. However in the event that the property is already occupied by a tenant, the rental monies will be collected by the Trustee on behalf of the Insolvent Estate, until the property is sold.

Please click on the following question for a more comprehensive explanation: Will I be able to keep my house if I file for bankruptcy?

Other Encumbered Assets (Assets financed by a financial institution)

Any assets that have been financed in terms of a finance agreement, in which these assets serve as security for repayment, e.g. in terms whereof ownership is retained until the asset has been fully paid, will be sold by the Trustee on behalf of the relevant creditor, or by the creditor himself with the consent of the Trustee.