IntroductionThe main objective of this article is to undertake an analysis of the effect that the creditor benefit requirement has on receivership applications. Under the Insolvency Act 24 of 1936, there are two procedures for a debtor to sequester their estate. Either by voluntary abandonment of one's estate, or by compulsory sequestration. In these two cases, it is required that the granting of sequestration be “for the benefit of the creditors”. The release of debtors from their debts remains an objective to be achieved if the benefit requirement is not relaxed. Although the law does not define what constitutes a benefit to creditors, courts have interpreted it to include a benefit to creditors. Loubser believes that: "South Africa cannot remain insensitive to developments in Europe and the United States of America, and there are signs that in South African insolvency law too, the emphasis is gradually being placed more on the fate of the insolvent debtor and the possibility of giving him the opportunity to make a new start. our system of South African insolvency law:1. In Ex parte Arntzen, the court denied the application for voluntary receivership of this estate because it was not satisfied that the plaintiff possessed realizable assets of sufficient value to cover all costs of the receivership which, under the terms of the law, will be payable from the free residue of his estate. Additionally, it would be to the benefit of his creditors if his estate were placed in receivership. In this case, we can see that the courts used this advantage to meet the creditor's demands in deciding whether to grant this request.In ex parte ShmuklerThe neck...... middle of paper...... 50,000 and who can afford to pay their debts in installments. Debt review also does not provide relief to debtors. In my humble opinion, I would like to submit that I agree with the above articles discussed to the extent that the South African Insolvency Act needs to be completely amended to the advantage of the debtors. as discussed above. It is clear that the advantage granted to the creditor's demands has constituted a stumbling block on the path to complete debt relief and a fresh start for the debtor. I argue that, for debtors who are drowning in debt, an overhaul of the systems in place is necessary if we are to return our country to the economically strong place we have enjoyed in the past. For South Africa to reduce the number of people applying for these sequestration orders, we need to change our processes and put in place other debt relief measures to deal with debtors who need them..