MRL 3701

In common parlance, a person may be said to be insolvent when his liabilities, fairly estimated, exceed his assets, fairly valued FALSE A debtor who has no assets and only liabilities cannot surrender his estates TRUE When the debtor applies for voluntary surrender, the debtor's affidavit, verifying that the statement of affairs is true and complete and that every estimated amount contained in it is fairly and correctly estimated, may be attested by the applicant's attorney. FALSE Th...

Study unit 1: Introduction to Insolvency Law Case Law: NB: Magnum Financial Holdings (Pty) Ltd (in Liquidation) v Summerly and another NNO 1984 (1) SA 160 (W) Meaning of “insolvency” Common meaning – a person is insolvent when he is unable to pay his debts, however, The legal test for insolvency is whether the debtor's liabilities, fairly estimated, exceed his assets, fairly valued. The inability to pay debts Is merely evidence of insolvency. A person who has insufficient ...

MRL 3701 2022 LATEST EXAM PACK MEMOS 2015 To JUNE 2020. (ANSWERED)INSOLVENCY LAW MRL 3701 2020 EXAM PACK QUESTIONS AND ANSWERS FROM2015 TO 2020 MAY 2020 Q & A NOV 2019 Q & A MAY 2019 Q & A OCT 2018 Q & A MAY 2018 Q & A NOV 2017 -Q & A NOV 2016 Q & A JUNE 2016 Q & A NOV 2015 Q & A

(a) The term "debtor" also embraces a person who is incapable of managing his own affairs. (2) (b) Thabo’s application for voluntary surrender must contain an allegation that it will be to the advantage of creditors if his estate is sequestrated. (2) (c) Christopher commits an act of insolvency by departing from his dwelling with the intent by doing so to evade payments of his debts. (2) (d) An application for compulsory sequestration brought by a creditor who is not at arm’s length...

Meaning of “insolvency” Common meaning – a person is insolvent when he is unable to pay his debts, however, The legal test for insolvency is whether the debtor's liabilities, fairly estimated, exceed his assets, fairly valued. The inability to pay debts Is merely evidence of insolvency. A person who has insufficient assets to discharge his liabilities (although he satisfy the test for insolvency) is not treated as insolvent for legal purposes unless his estate is sequestrated by an ...

(a) A debtor’s estate is sequestrated, not the debtor himself. (2) (b) The debtor need not have ordinarily resided or carried on business for the entire 12 months preceding the sequestration application: ordinary residence or conduct of business at any time during that period suffices. (2) (c) Free residue’ is defined in s 2 as ‘that portion of the estate which is not subject to any right of preference by reason of any special mortgage, legal hypothec, pledge or right of retention. (...

(1) Explain the main purpose of a sequestration order in respect of Tenza’s estate.(2) The main purpose of a sequestration order is to ensure the orderly and fair distribution of a debtor’s (Tenza’s) assets if his assets are not sufficient to pay all his creditors in full. (2) Give reasons why a sequestration order may not be granted if a debtor has only one creditor or if there are not enough assets to cover the costs of sequestration. (3) If a debtor has only one creditor, there ...

MRL3701 INSOLVENCY LAW PAST EXAM PACK QUESTIONS AND ANSWERS (2019 – 2014) SUMMARISED NOTES 2020