MRL3701
ASSIGNMENT 1 (SEMESTER 1)..
DUE DATE: 25 March 2025..
PREVIEW:
QUESTION 1
In evaluating whether Maria is likely to be successful in her application for sequestration of Thabo's
estate, we need to consider the provisions of the Insolvency Act 24 of 1936, which sets the legal
requirements for the sequestration of a debtor’s estate. Sequestration is a legal process initiated by a
creditor to have a debtor declared insolvent. To succeed in her application, Maria must demonstrate
that:
1. Insolvency of Thabo
For Maria’s application for sequestration to succeed, Thabo must be shown to be insolvent. Insolvency
occurs when the debtor's liabilities exceed their assets. In this case, Thabo has been experiencing
financial difficulties since March 2024 and has failed to pay his debts, with liabilities exceeding assets
since 30 November 2024. Maria’s investigation has confirmed that Thabo owns an apartment and
furniture but still owes significant amounts to creditors. Since his liabilities exceed his assets, Thabo is
clearly insolvent, satisfying the requirement for insolvency under the Insolvency Act.
2. Due Debt
Maria must establish that Thabo owes a due debt. Thabo owes Maria R320,000, which was due on 5
January 2025, and he has failed to make the payment. The debt is due and payable, and Thabo’s failure
to pay reinforces the basis for the sequestration application. As the creditor, Maria is entitled to seek
sequestration due to the unpaid debt.
3. Failure to Pay Debts
Disclaimer:
The materials provided are intended for educational and informational purposes only. They should not be
Maria must demonstrate that Thabo has failed to pay his debts. Thabo's ongoing financial difficulties,
submitted as original work or used in violation of any academic institution's policies. The buyer is solely
coupled with his inability to pay his debt to Maria and other creditors, establish that he is not fulfilling
responsible for how the materials are used.
his financial obligations. Failure to pay debts is a key factor in sequestration applications, and Thabo's
actions (or lack thereof) in this regard further support Maria’s claim for sequestration.
ASSIGNMENT 1 (SEMESTER 1)..
DUE DATE: 25 March 2025..
PREVIEW:
QUESTION 1
In evaluating whether Maria is likely to be successful in her application for sequestration of Thabo's
estate, we need to consider the provisions of the Insolvency Act 24 of 1936, which sets the legal
requirements for the sequestration of a debtor’s estate. Sequestration is a legal process initiated by a
creditor to have a debtor declared insolvent. To succeed in her application, Maria must demonstrate
that:
1. Insolvency of Thabo
For Maria’s application for sequestration to succeed, Thabo must be shown to be insolvent. Insolvency
occurs when the debtor's liabilities exceed their assets. In this case, Thabo has been experiencing
financial difficulties since March 2024 and has failed to pay his debts, with liabilities exceeding assets
since 30 November 2024. Maria’s investigation has confirmed that Thabo owns an apartment and
furniture but still owes significant amounts to creditors. Since his liabilities exceed his assets, Thabo is
clearly insolvent, satisfying the requirement for insolvency under the Insolvency Act.
2. Due Debt
Maria must establish that Thabo owes a due debt. Thabo owes Maria R320,000, which was due on 5
January 2025, and he has failed to make the payment. The debt is due and payable, and Thabo’s failure
to pay reinforces the basis for the sequestration application. As the creditor, Maria is entitled to seek
sequestration due to the unpaid debt.
3. Failure to Pay Debts
Disclaimer:
The materials provided are intended for educational and informational purposes only. They should not be
Maria must demonstrate that Thabo has failed to pay his debts. Thabo's ongoing financial difficulties,
submitted as original work or used in violation of any academic institution's policies. The buyer is solely
coupled with his inability to pay his debt to Maria and other creditors, establish that he is not fulfilling
responsible for how the materials are used.
his financial obligations. Failure to pay debts is a key factor in sequestration applications, and Thabo's
actions (or lack thereof) in this regard further support Maria’s claim for sequestration.
