MRL3701 ASSIGNMENT 2 | 13TH APRIL 2024
SOLUTIONS YOU CAN TRUST!
FOOTNOTES AND BIBLIOGRAPHY INCLUDED!
MRL3701
INSOLVENCY LAW
ASSIGNMENT 2 | 13TH APRIL 2024
SOLUTIONS YOU CAN TRUST!
FOOTNOTES AND BIBLIOGRAPHY INCLUDED!
Question 1: (10 marks)
Wandile owes a total of R3 million to various creditors. His creditors include
Zozo to whom he owes R400 000. He also owes R1,3 million to DRG
Bank........
a. Discuss the requirements that an applicant must prove in order to obtain
a court order for the sequestration of a debtor’s estate.
In terms of section 8 of the Insolvency Act 24 of 1936,1 any creditor
who is owed more than R100 can apply to court for the compulsory
sequestration of the debtor's estate. Wandile is in debt of R3
million spread across multiple creditors, including a debt of
R400,000 to Zozo and R1.3 million to DRG Bank. His financial
woes began last year after a significant loss from an investment
in a quick-profit scheme, leaving his financial health severely
impacted. By October 31, 2023, his debts surpassed his assets
by R800,000. Recently, Wandile has not been able to settle
some of his outstanding debts, specifically the R400,000
owed to Zozo, which was supposed to be paid by February
1, 2024....................................................................
MRL3701 ASSIGNMENT 2 | 13TH APRIL 2024
SOLUTIONS YOU CAN TRUST!
FOOTNOTES AND BIBLIOGRAPHY INCLUDED!
SOLUTIONS YOU CAN TRUST!
FOOTNOTES AND BIBLIOGRAPHY INCLUDED!
MRL3701
INSOLVENCY LAW
ASSIGNMENT 2 | 13TH APRIL 2024
SOLUTIONS YOU CAN TRUST!
FOOTNOTES AND BIBLIOGRAPHY INCLUDED!
Question 1: (10 marks)
Wandile owes a total of R3 million to various creditors. His creditors include
Zozo to whom he owes R400 000. He also owes R1,3 million to DRG
Bank........
a. Discuss the requirements that an applicant must prove in order to obtain
a court order for the sequestration of a debtor’s estate.
In terms of section 8 of the Insolvency Act 24 of 1936,1 any creditor
who is owed more than R100 can apply to court for the compulsory
sequestration of the debtor's estate. Wandile is in debt of R3
million spread across multiple creditors, including a debt of
R400,000 to Zozo and R1.3 million to DRG Bank. His financial
woes began last year after a significant loss from an investment
in a quick-profit scheme, leaving his financial health severely
impacted. By October 31, 2023, his debts surpassed his assets
by R800,000. Recently, Wandile has not been able to settle
some of his outstanding debts, specifically the R400,000
owed to Zozo, which was supposed to be paid by February
1, 2024....................................................................
MRL3701 ASSIGNMENT 2 | 13TH APRIL 2024
SOLUTIONS YOU CAN TRUST!
FOOTNOTES AND BIBLIOGRAPHY INCLUDED!
