Insolvency can be defined as a financial condition or state when either a legal entity or a person’s liabilities or debts exceed their assets, or when a legal entity or person can no longer meet their debt obligations on time. Immediate action must take place once one becomes insolvent in order to rectify the situation before the said person becomes bankrupt. Insolvency in South Africa’s legal system refers to the status of “diminished legal capacity” (capitus diminution) imposed on people, by the court. When an insolvent person is said to have diminished legal capacity it means that they are then deprived of certain important legal capacities and rights in order to protect the interests of other people (creditors and prospective creditors alike).
At Joselowitz & Andrews Attorneys we are capable of advising creditors, stakeholders, and even your employees throughout all stages of the process. If you are a creditor in the insolvency situation we are experienced in helping you make strategic decisions (either between liquidation or restructuring the business) to help you get the best out of the situation.We will guide you on how best to file for insolvency and will lay out every duty and liability of each party that is involved in the process. Joselowitz & Andrews Attorneys understand that speed is of the utmost importance in cases like these and we will work timeously to get it all done, all the while ensuring that all creditors have proper legal support.
Initial consultations are charged at R1200.00 excluding VAT. Thereafter, should you wish to continue with the matter, a fee is discussed and agreed upon.
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