Pietermaritzburg insolvency lawyers
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Insolvency
Viv Greene Attorneys are insolvency lawyers in Pietermaritzburg.
Insolvency is a legal term used to describe a debtor’s state of being unable to pay its debts, or when their liabilities exceed their assets, whether the debtor is an individual or a corporate entity.
If the debtor is a corporate entity, the High Court can grant an Order for the liquidation of the entity, in terms of the Insolvency Act 24 or 1936 (as amended).
If the debtor is an individual, the High Court in Pietermaritzburg can likewise grant an order for the sequestration of an individual’s estate.
An estate of an individual can be sequestrated either through voluntary sequestration when the individual him/herself applies for the sequestration of their own estate or through involuntary sequestration when a creditor(s) applies for the sequestration of the individual’s estate.
The purpose of the liquidation and sequestration process is to ensure a fair distribution of the debtor’s assets amongst a group of creditors.