Compulsory Sequestration

Compulsory Sequestration occurs when a person’s creditors make an application to the High Court to have a person declared insolvent. The results are in effect the same as voluntary sequestration in that the person loses control of their estate and all the assets are sold to the benefit of the creditors.

A creditor may apply for sequestration if the debtor has committed an act of insolvency, one of which is not making payment for a debt on time.