Insolvency occurs when a debtor can no longer pay their debts, triggering serious legal consequences. This article unpacks what insolvency means in South Africa, the acts of insolvency under the Insolvency Act, the steps in the sequestration process, and a real-life case where a debtor’s estate was provisionally sequestrated.

A recent judgment by the Western Cape High Court has significant implications for creditors, business rescue practitioners, and companies...