Insolvent Estates (Liquidations)

When may an insolvent apply for rehabilitation?

An insolvent is a debtor whose estate (everything, including money, that a person owns) is under sequestration (has been placed under control until certain statutory provided time periods and/or prescribed conditions have been met). If you are married in community of property and your spouse becomes insolvent, the Insolvency Act, 1936, considers you to be insolvent as well in light of the fact that there is only one joint estate.

Who can apply for rehabilitation?

  • The insolvent himself or herself
  • The insolvent’s duly authorised agent, if the insolvent does not live in South Africa
  • The widow or widower of an insolvent, if they were married in community of property
  • The former spouse of an insolvent, if they were married in community of property
  • The executors of the deceased estate of an insolvent

How soon after having been sequestrated can an insolvent apply for rehabilitation?

For more specific details, please read sections 119 to 129 of the Insolvency Act 24 of 1936 as amended:

At any time

  • If an offer of composition is made and accepted by three quarters of creditors in number and value, and after payment has been made or security given, or;
  • If all creditors' claims and sequestration costs are paid in full

Six months

  • After six months of sequestration if no claims have been proven against the estate, provided the insolvent has not been convicted of certain offences and has not previously been sequestrated; 

Twelve months

  • If the insolvent has not been convicted of certain offences and has not previously been sequestrated, he may apply for rehabilitation after 12 months have elapsed from the date of the Master's confirmation of the first trustee's account in the estate;

Three years

  • If the insolvent has not been convicted of certain offences, but has previously been sequestrated, he may not apply for rehabilitation until three years have elapsed from the date of the Master's confirmation of the first trustee's account in the estate;

Five years

  • If the insolvent has been convicted of certain offences, he may not apply for rehabilitation until five years have elapsed from the date of his conviction; 

Ten years

  • After 10 years have expired an insolvent is deemed to be rehabilitated unless a court orders otherwise upon the application of an interested person. Such an application must be made within the ten year period.

Please contact an attorney or your nearest Office of the Master for more information and assistance regarding the steps to follow to apply for rehabilitation. The following link will take you to the forms related to Insolvent Estates.

This is a very busy and complex division which supervises the administration of thousands of insolvent estates every year. 

Estates are usually administered by professionals, who know the functions and procedures.  Although insolvency procedures are too complex to explain in a page or two, the information below may be of interest to the public.

As from the 01 April 2018, all Requisitions lodged to the Masters Offices Must be Original. No Copies, Emails or Faxed Requisitions will be accepted. The Section 9(3) Security will also be increased to the amount of R30 000-00 as from the 01 April 2018.

  • Follow this link for New Applicants and the List of Active Insolvency Practitioners and all other related information

  • Insolvency Workshop’s Resolutions - Resolutions taken at Insolvency Workshops (Updated: 30/04/2019)

  • Insolvency Dashboards (PDFeform Excel files)
    The information in this processes dashboard is provided without any representations or warranties, express or implied. The Department of Justice and Constitutional Development, Master’s Branch and its officials or functionaries are not responsible for the correctness of the information contained in this processes dashboard provided by other parties and do not accept liability for damage or loss based or resulting from reliance on the information. The purpose of this processes dashboard is merely to ensure transparency in the insolvency process.

NOTICE TO STAKEHOLDERS: INSOLVENCIES AND LIQUIDATIONS – MASTER POLOKWANE

Kindly take note that as from 1 January 2018, all Insolvency and Liquidation matters where Court orders are issued in the Limpopo High Court or voluntary liquidations where the registered address falls within the jurisdiction of the Limpopo Province, will be dealt with in the Master of the High Court, Polokwane.

Please ensure that all documentation, including notices of motion, Court orders and requisitions for these matters are submitted in the at the Master’s Office. Polokwane.

Your cooperation in this regard is much appreciated.

By: Office of the Chief Master
06 Decembver 2017