Debt recovery

Considering Using Sequestration to Recover Levies? Think Again

KVV Inc Attorneys

Published on: 14/04/2026

A Gauteng High Court ruling highlights that sequestration is not a debt-collection tool for levy arrears and must meet strict Insolvency Act requirements, with courts preferring less drastic enforcement remedies.

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Bodies Corporate: Before You Sequestrate to Recover Arrears…

KVV Inc Attorneys

Published on: 04/03/2025

Sequestrating a debtor, like a sectional title owner, to recover arrear levies can backfire. While tempting, the Body Corporate, as the petitioning creditor, risks bearing the full cost of sequestration if the insolvent estate lacks funds. Even if levies are paid before property transfer, as legally required, this doesn't absolve the Body Corporate's responsibility for potential shortfalls. Secured creditors, like banks, can often protect themselves from these costs.

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Don’t Give a Loan or Credit to Anyone (Not Even a Friend) Without Legal Advice!

KVV Inc Attorneys

Published on: 04/03/2025

Lending money without registering as a credit provider under the NCA is risky. Unregistered lenders risk losing the entire loan amount, even if a settlement agreement exists, as courts may find the agreement unlawful and invalid. The NCA protects borrowers and requires credit providers to assess affordability. Even single loans of any amount fall under the NCA, and while courts have some discretion to make a "just and equitable" order, there's no guarantee. Always seek legal advice before lending.

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