These are three different legal processes for dealing with debt:
Sequestration:
• Voluntary surrender of your estate to the High Court under the Insolvency Act
• Requires your debt to exceed your assets by a certain margin
• Results in loss of all non-essential assets
• Affects your financial status for 10 years
Debt Review:
• Restructuring of debts into affordable monthly payments
• Keeps all assets if payments are maintained
• Regulated by the National Credit Act
• Typically takes 3-5 years to complete
Administration:
• Legal process where payments are extended and reduced
• Payments to creditors made every three months
• Takes much longer to complete than debt counselling
• Less commonly used today
For most over-indebted consumers, debt review is the most appropriate option.