MRL3701
ASSIGNMENT 1 (SEMESTER 1)..
DUE DATE: 25 March 2025..
PREVIEW:
QUESTION 1
To determine whether Maria is likely to be successful in her application for sequestration of Thabo's
estate, we must assess the situation according to the legal framework under South African insolvency
law, specifically the Insolvency Act 24 of 1936. This application is made when a creditor seeks to have a
debtor declared insolvent because the debtor is unable to meet their obligations to creditors. The
following key factors must be considered:
1. Insolvency of Thabo
For sequestration to be granted, Maria must demonstrate that Thabo is insolvent. According to the
Insolvency Act, insolvency arises when a debtor's liabilities exceed their assets. In this case, since 30
November 2024, Thabo’s liabilities have indeed exceeded his assets. The current state of insolvency
can be substantiated by presenting Thabo’s financial statements, which show that his debts surpass
his available assets. Thabo has failed to pay his debts, including his obligation to Maria, which also
indicates his inability to pay, further confirming his insolvency.
The requirement for insolvency is satisfied, and Thabo’s financial difficulties, compounded by his failure
to meet his obligations, support Maria's application for sequestration.
2. Due Debt
Maria must establish that Thabo’s debt to her is due and payable. The debt owed by Thabo to Maria,
amounting to R320,000, was due on 5 January 2025. Since Thabo has failed to make this payment, the
debt remains unpaid, thus satisfying the condition of a due debt.
Disclaimer:
Thabo’s failure
The materials to pay the
provided debt is critical
are intended to Maria’s
for educational sequestration
and informationalapplication,
purposes only.asThey
it shows that
should notthe
be debt
issubmitted
both valid
as and overdue,
original work ormaking
used initviolation
actionable under
of any the sequestration
academic provisions.
institution's policies. The buyer is solely
responsible for how the materials are used.
3. Failure to Pay Debts
Maria must show that Thabo has failed to pay his debts, which he has, as he has not settled the debt
to her or other creditors. His ongoing financial difficulties and failure to pay his obligations support the
ASSIGNMENT 1 (SEMESTER 1)..
DUE DATE: 25 March 2025..
PREVIEW:
QUESTION 1
To determine whether Maria is likely to be successful in her application for sequestration of Thabo's
estate, we must assess the situation according to the legal framework under South African insolvency
law, specifically the Insolvency Act 24 of 1936. This application is made when a creditor seeks to have a
debtor declared insolvent because the debtor is unable to meet their obligations to creditors. The
following key factors must be considered:
1. Insolvency of Thabo
For sequestration to be granted, Maria must demonstrate that Thabo is insolvent. According to the
Insolvency Act, insolvency arises when a debtor's liabilities exceed their assets. In this case, since 30
November 2024, Thabo’s liabilities have indeed exceeded his assets. The current state of insolvency
can be substantiated by presenting Thabo’s financial statements, which show that his debts surpass
his available assets. Thabo has failed to pay his debts, including his obligation to Maria, which also
indicates his inability to pay, further confirming his insolvency.
The requirement for insolvency is satisfied, and Thabo’s financial difficulties, compounded by his failure
to meet his obligations, support Maria's application for sequestration.
2. Due Debt
Maria must establish that Thabo’s debt to her is due and payable. The debt owed by Thabo to Maria,
amounting to R320,000, was due on 5 January 2025. Since Thabo has failed to make this payment, the
debt remains unpaid, thus satisfying the condition of a due debt.
Disclaimer:
Thabo’s failure
The materials to pay the
provided debt is critical
are intended to Maria’s
for educational sequestration
and informationalapplication,
purposes only.asThey
it shows that
should notthe
be debt
issubmitted
both valid
as and overdue,
original work ormaking
used initviolation
actionable under
of any the sequestration
academic provisions.
institution's policies. The buyer is solely
responsible for how the materials are used.
3. Failure to Pay Debts
Maria must show that Thabo has failed to pay his debts, which he has, as he has not settled the debt
to her or other creditors. His ongoing financial difficulties and failure to pay his obligations support the
