INSOLVENCY - MOJ
Insolvency
Insolvency is essentially a debt collection process, but it also relates to two other processes: sequestration and liquidation. The procedure of managing the insolvent estate of all entities other than legal persons is referred to as sequestration. The procedure of dissolving a legal person is referred to as liquidation. Practitioners of insolvency serve as trustees of individual bankrupt estates and liquidators of corporations.
The sequestration of an insolvent person's estate eliminates the insolvent of his estate and transfers it to the Master and the appointed trustee. Sequestration stops legal actions as well as execution of judgements rendered against the insolvent. The assets must be gathered by the trustee or liquidator, sold, and the earnings used to pay the creditors. The proceeds from the assets covered by secured claims are used to cover some costs, while the proceeds from the assets not subject to secured claims and secured claims are used to cover the costs of sequestration, statutory preferences, and the claims of the estate's unsecured creditors who have established their claims.
The most frequent forms of insolvency are compulsory sequestration by creditors and voluntary surrender by the debtor.
The following persons are a “Debtor” according to section 2 of the Insolvency Act and case law:
• A natural person;
• A partnership;
• The estate of a person whose estate is already sequestrated and is still under sequestration;
• Certain clubs;
• Trusts
• Deceased estates;
• Estates of certain minors, persons under Curatorship, absentees;
• Joint estates of spouses who marry in community of property;
The Insolveny Act 24 of 1936, Companies Act 28 of 2004 and various other legislations regulate sequestrations, liquidations, and judicial management in Namibia.
The first insolvency was registered in 1920 in the Master's office, Windhoek.
Contact Details
Windhoek
Postal address :
Master of the High Court
Private Bag 13190
Windhoek
Tel No : 061-2921111
Fax No : 061-236802
Oshakati
Postal address :
Master of the High Court
Private Bag 5563
Oshakati
Tel No : 065-2236700
Fax No : 065-220048