Myths vs Facts
Rehabilitation after sequestration is often confused with other services. Here is what it is — and what it is not.
Myth
“Rehabilitation clears your credit record automatically.”
Fact
The court order ends your insolvency status. Credit bureaux must be notified separately; the listing update is administrative, not automatic.
Myth
“It is the same as debt review or debt counselling.”
Fact
Debt review is an NCR-regulated process under the National Credit Act for over-indebted consumers. Rehabilitation is a High Court application under the Insolvency Act for previously sequestrated individuals only.
Myth
“After 10 years you don’t need to do anything.”
Fact
Section 127A deems you rehabilitated automatically after 10 years. In practice, you may still need a court order or confirmatory step to prove the date and update third-party records.
Myth
“A company can be rehabilitated after sequestration.”
Fact
Companies are liquidated, not sequestrated. The Insolvency Act rehabilitation process applies to natural persons only.