Introduction

In a normal dynamic economy, the financial positions of businesses and individuals regularly change, sometimes for the worse and unfortunately sometimes even to the extent of bankruptcy.

In addition to the above, the current economic climate is placing enormous strain on businesses and individuals alike and many are finding themselves in a position of financial distress.

South African Law provides a Legal Framework which governs not only the fates of ailing and failing businesses and individual persons who find themselves in financial distress, but also those that are affected by the financial distress of others.

In addition to providing for situations where companies or individuals are liquidated or sequestrated respectively, our law fortunately provides for certain mechanisms through which they may find some financial relief which may avert liquidation or sequestration - such as Business Rescue and Debt Counselling.

Some of these mechanisms include:

• In the case of over-indebted individuals - the provisions of the National Credit Act providing for Debt Counselling which affords some reprieve (through the formulation of a payment plan to creditors) for over-indebted consumers in respect of credit agreements.
• In the case of companies - our law providing for business rescue, which allows for a business rescue plan to be formulated with the aim of the restoration of the ailing company to financial well-being.

Should other measures fail, a company or individual or its creditors may apply for its Liquidation or Sequestration (as the case may be) whereupon the estate will be wound up.

We at Campbell Attorneys are equipped to assist businesses and individuals alike navigate through their darkest financial times.

Contact Jason Clemens
031 564 6494
jason@campbellattorneys.co.za