MRL3701 INSOLVENCY LAW
ASSIGNMENT 02
QUESTION
1. Automatic rehabilitation happens 10 years from the date of sequestration. An
insolvent not rehabilitated by the court within a period of 10 years from the
date of sequestration of his estate is deemed to be rehabilitated unless the
court, on application by an interested person, orders otherwise prior to expiry
of the 10-year period.
2. In south Africa rehabilitation, which can provide for a fresh start may take
anything from six months to ten years and achieving it may be onerous for an
insolvent debtor. In connection with rehabilitation of the insolvent ,the
constitutional question that may arise concerns the time taken for
rehabilitation of natural persons to occur. These south African periods is what
is a creditor-friendly system may be contrasted with the shorter periods ,which
are to be found in some more debtor-friendly foreign jurisdictions, for
example, in Wales and England , the bankruptcy discharge of the debtor
occurs after one year from the commencement of the bankruptcy or
sometimes even sooner.
The question of whether the south African rehabilitation provisions in the
insolvency act may infringe section 22 of the south African constitutions which
provides every citizen with the right of freedom to choose their
trade,occupation and profession. The constitutional challenge would be based
on the argument that it is unreasonably burdensome,as contrasted with
foreign developments, for the south African insolvent individual to be required
to continue to account to the trustee for economic activities during the
sequestration period. Insolvency restricts many activities of a debtor that
being economically and in the status between sequestration and
rehabilitation. Also only sequestration followed by rehabilitation grants an
overburdened debtor a discharge of pre-sequestration debt . there are no
other debt relief measures used to provide for a discharge and a fresh start.
The concept of a fresh start for the insolvent is so central to the rehabilitation
of the debtor who is generally freed from his pre-sequestration debts and
restrictions upon him as a result of sequestration. If an insolvent debtors rights
are challenged in court it would first however had to be weighed up against
the provisions of the limitation clause in the constitution.
(2017).’rehabilitation chapter 19’ ‘R.Sharrock A’hockley: insolvency law.
ASSIGNMENT 02
QUESTION
1. Automatic rehabilitation happens 10 years from the date of sequestration. An
insolvent not rehabilitated by the court within a period of 10 years from the
date of sequestration of his estate is deemed to be rehabilitated unless the
court, on application by an interested person, orders otherwise prior to expiry
of the 10-year period.
2. In south Africa rehabilitation, which can provide for a fresh start may take
anything from six months to ten years and achieving it may be onerous for an
insolvent debtor. In connection with rehabilitation of the insolvent ,the
constitutional question that may arise concerns the time taken for
rehabilitation of natural persons to occur. These south African periods is what
is a creditor-friendly system may be contrasted with the shorter periods ,which
are to be found in some more debtor-friendly foreign jurisdictions, for
example, in Wales and England , the bankruptcy discharge of the debtor
occurs after one year from the commencement of the bankruptcy or
sometimes even sooner.
The question of whether the south African rehabilitation provisions in the
insolvency act may infringe section 22 of the south African constitutions which
provides every citizen with the right of freedom to choose their
trade,occupation and profession. The constitutional challenge would be based
on the argument that it is unreasonably burdensome,as contrasted with
foreign developments, for the south African insolvent individual to be required
to continue to account to the trustee for economic activities during the
sequestration period. Insolvency restricts many activities of a debtor that
being economically and in the status between sequestration and
rehabilitation. Also only sequestration followed by rehabilitation grants an
overburdened debtor a discharge of pre-sequestration debt . there are no
other debt relief measures used to provide for a discharge and a fresh start.
The concept of a fresh start for the insolvent is so central to the rehabilitation
of the debtor who is generally freed from his pre-sequestration debts and
restrictions upon him as a result of sequestration. If an insolvent debtors rights
are challenged in court it would first however had to be weighed up against
the provisions of the limitation clause in the constitution.
(2017).’rehabilitation chapter 19’ ‘R.Sharrock A’hockley: insolvency law.
