Hi

I have a acqaintance that I believe has been blacklisted or been declared bankrupt and he can therefore not rent from rental agencies. He is battling to find accomodation for him and his family (3 of them in total) Is there anywhere in Gauteng that he can apply for state housing or assistance like that?

Hi Tigress

The effect of a Sequestration Order is severe. The debtor (Insolvent) is divested of his or her estate and a trustee is appointed to oversee the realisation of the insolvent's assets and the payment of a dividend to the insolvent's creditors.

There is nothing in law preventing an insolvent, with the consent of his trustee, from owning immovable property during the period of his sequestration. However it is highly unlikely that a financial institution will grant credit to an insolvent who has not been rehabilitated. It must be mentioned that this is a somewhat academic question in that any assets of the insolvent during the period of his or her insolvency may be attached and sold in order that creditors be paid a dividend. It must be emphasised in this regard that the estate of an insolvent will remain vested in a trustee until he is rehabilitated.

The effect of rehabilitation is to end a person's status as an insolvent which means putting an end to the sequestration. It has the effect of discharging the insolvent's debts existing as at the date of sequestration.

An insolvent is automatically rehabilitated after the expiry of a period of 10 years from the date of his sequestration. It is possible to be rehabilitated earlier but this is at the discretion of a Court to whom an application must be made.