What is the effect of Rehabilitation?

In terms of Section 129(1) of the Insolvency Act, Act 24 of 1936, the rehabilitation of an Insolvent leads to and end of the sequestration, discharges all of the insolven'ts debts which had arisen before the sequestration and relieves the insolvent of every disability resulting from the sequestration.

Debts incurred by the Insolvent after sequestration must still be paid in full by the Insolvent.

It is important to note that the Court may, upon hearing the application by an Insolvent for rehabilitation, grant the order for rehabilitation on certain conditions.

Rehabilitation therefore enables the previous Insolvent person to move on with his / her life. The rehabilitated person is no longer limited by the effects that sequestration has on a person's ability to manage his or her funds.


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