Insolvency Practice

Navigating financial distress with expert legal guidance. From voluntary sequestration to complex liquidations, OM Baloyi Inc. provides advisory for individuals and corporate entities across South Africa.

Our Legal Expertise

Liquidation & Sequestration

For Individuals: Sequestration Services

We offer discreet and professional advisory on the legal surrender of personal estates.

Voluntary & “Friendly” Sequestration: Assisting individuals in applying for the surrender of their estate to the High Court when it is to the benefit of creditors.
Effect of Sequestration: Detailed advisory on how sequestration impacts your assets, employment, and future financial standing.
Rehabilitation Applications: Helping individuals restore their legal status after the sequestration process.

For Businesses: Liquidation & Winding Up

When a company or close corporation is no longer commercially or factually solvent, we facilitate the legal exit strategy.

Voluntary Liquidation: Assisting directors and shareholders in the proactive winding up of a company.
Compulsory Liquidation: Representing creditors in applications to liquidate companies that are unable to pay their debts.

Technical Advisory & Compliance

L&D Accounts: Drafting & Administration

The accuracy of Liquidation and Distribution (L&D) Accounts is critical for approval by the Master of the High Court. We specialize in:

Drafting formal accounts that detail the realization of assets and the distribution of proceeds.
Ensuring compliance with statutory preferences and secured creditor rankings.

Specialised Insolvency Advisory

Impeachable Transactions: Guidance on voidable preferences, dispositions without value, and transactions intended to prejudice creditors (Sections 26-30 of the Insolvency Act).
Proof of Claims: Assisting creditors in the formal submission and substantiation of claims at meetings of creditors.
Uncompleted Contracts: Advisory on the liquidator’s powers to either terminate or continue contracts entered into prior to insolvency.

Why Choose OM Baloyi Inc?

Statutory Compliance: All processes are handled strictly within the prescribes of applicable laws and regulations.
Creditor Protection: We work to maximize the dividend for creditors while ensuring the process is legally beyond reproach.
Professional Ethics: Transparent communication regarding costs, timelines, and the “advantage to creditors” test required by South African courts.

Frequently Asked Questions (FAQ)

Q: What is the “Advantage to Creditors” test?
A: In South African law, the court will only grant a sequestration order if it is proven that there will be a sufficient “dividend” (payment) to the creditors after all costs are paid.

Q: How does sequestration affect my current contracts?
A: Sequestration does not automatically terminate most contracts, but it does give the Trustee the power to decide whether to uphold or cancel them, depending on what benefits the estate.

Secure Your Financial Future with Expert Counsel.

Whether you are a business facing liquidation or an individual seeking a fresh start through sequestration, our team is ready to assist.

Schedule a confidential consultation to discuss your specific needs.