MRL3701 assignment 1 semester 1 2024 insolvency law

Question 1: (5 marks) Indicate whether the following statements are TRUE (T) or FALSE (F) and provide a reason or explanation for your answer. a. An act of insolvency committed by a spouse married in community of property operates as an act of insolvency by the guilty spouse. b. During the period of insolvency, an insolvent is not allowed to acquire a new estate. c. The insolvent may recover for his own benefit any pension to which he may be entitled as this forms part of property that does not fall into the insolvent estate. d. An insolvent who brings an action in the Magistrate’s Court is obliged by Rule 62(1)(b) of the Magistrate’s Court Rules to give security for the costs of the action if the defendant requests it. e. A debtor who has no assets and only liabilities can surrender his estate. (5) Answers a. TRUE. In community of property, the debts and liabilities of one spouse affect the joint estate, making an act of insolvency by one spouse also an act of insolvency for the other spouse.