• Rehabilitation is the end of the sequestration process.
• An individual can be regarded as solvent after rehabilitation.
• It enables a person who has been sequestrated to make a fresh start, free from pre-sequestration debts. 
• An insolvent can rehabilitate by way of a High Court application without appearing at court.
• When a rehabilitation order is granted all judgements and negative reflections on your credit profile will be removed and no record shall exist of any of these if incurred before your sequestration.

• When you are sequestrated, your debt vests in a trustee who must realise the assets and distribute the proceeds of the sale amongst creditors in accordance with the Insolvency Act 24 of 1936. 
• None of your old creditors can force you to pay back any debt after sequestration.
• There is no need to pay any “old” debt in order to apply for rehabilitation.

• Even where the provisions of the Insolvency Act 24 of 1936 have been complied with, the court is not obliged to grant a rehabilitation order. 
• An insolvent does not have a right to rehabilitation and therefore the court has a discretion. 
• It is however rare that the court will deny rehabilitation where all the requirements are met.

If you have been sequestrated for ten (10) years or longer, you rehabilitate automatically. In this instance you may approach the Master of the High Court for written confirmation.

The only court that will have jurisdiction to rehabilitate you is the court that issued your sequestration order.

• During the process of winding up your estate there could be insufficient funds available to cover administrative costs of the winding up of your estate.
• Should there be a shortfall in the funds available for the general administration of your insolvent estate then each creditor who has proven a claim will become liable to pay a pro-rata amount towards the administrative cost. 
• The administrative costs that have been paid on your behalf will be due by you when you bring your application for rehabilitation.

• Debt that is acquired by a unrehabilitated insolvent does not form part of the insolvent estate
• Such debt must be paid to the applicable creditor.

If there is any money left over once all your creditors have been paid, your trustee must pay the excess amount into the guardian’s fund which is under the control of the Master of the High Court. Once you rehabilitate, you will be allowed to collect the money from the guardian’s fund.

It is at the bank / financial entity’s discretion whether they will be willing to assist you with any credit/loans after you have been rehabilitated.