[TYPE THE COMPANY NAME]
MRL3701 Assignment 2
(COMPLETE ANSWERS) Semester 2
2025 - DUE 9 September 2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of the
contents of the document.]
, Exam (elaborations)
MRL3701 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2025 - DUE 9 September 2025
• Course
• Insolvency Law (MRL3701)
• Institution
• University Of South Africa (Unisa)
• Book
• Hockly\'s Insolvency Law Casebook
MRL3701 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 9 September
2025; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success
with us..
QUESTION: Bongani is experiencing financial difficulty. He has failed to pay his debts
over the past few months, and his liabilities have exceeded his assets since 28 October
2024. Bongani owes a total of R2 500 000 to his creditors, including Flora to whom he
owes R280 000. Although this debt was due and payable to Flora on 8 January 2024,
Bongani failed to pay the debt. Frustrated by not having been paid back, Flora
undertook an investigation into Bongani’s financial situation. She has established that
Bongani owns a flat valued at R1 250 000 and a motor vehicle valued at R200,000. Flora
is planning to apply for the sequestration of Bongani’s estate. Assume that the court
grants an order for the sequestration of Bongani’s estate. Discuss the effect that such an
order would have on Bongani.
Effect of a Sequestration Order on Bongani
Once the High Court grants a sequestration order against Bongani’s estate under the
Insolvency Act 24 of 1936, the following effects apply:
1. Bongani is declared insolvent
• Bongani will no longer have full legal capacity to deal with his estate (s 20(1)(a) of the
Insolvency Act).
• His estate is “divested” from him and vests in the Master of the High Court initially,
and then in the appointed trustee (s 20(1)(c)).
• This means he loses control of his property – he cannot sell, mortgage, or dispose of his
assets.
MRL3701 Assignment 2
(COMPLETE ANSWERS) Semester 2
2025 - DUE 9 September 2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of the
contents of the document.]
, Exam (elaborations)
MRL3701 Assignment 2 (COMPLETE ANSWERS)
Semester 2 2025 - DUE 9 September 2025
• Course
• Insolvency Law (MRL3701)
• Institution
• University Of South Africa (Unisa)
• Book
• Hockly\'s Insolvency Law Casebook
MRL3701 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 9 September
2025; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success
with us..
QUESTION: Bongani is experiencing financial difficulty. He has failed to pay his debts
over the past few months, and his liabilities have exceeded his assets since 28 October
2024. Bongani owes a total of R2 500 000 to his creditors, including Flora to whom he
owes R280 000. Although this debt was due and payable to Flora on 8 January 2024,
Bongani failed to pay the debt. Frustrated by not having been paid back, Flora
undertook an investigation into Bongani’s financial situation. She has established that
Bongani owns a flat valued at R1 250 000 and a motor vehicle valued at R200,000. Flora
is planning to apply for the sequestration of Bongani’s estate. Assume that the court
grants an order for the sequestration of Bongani’s estate. Discuss the effect that such an
order would have on Bongani.
Effect of a Sequestration Order on Bongani
Once the High Court grants a sequestration order against Bongani’s estate under the
Insolvency Act 24 of 1936, the following effects apply:
1. Bongani is declared insolvent
• Bongani will no longer have full legal capacity to deal with his estate (s 20(1)(a) of the
Insolvency Act).
• His estate is “divested” from him and vests in the Master of the High Court initially,
and then in the appointed trustee (s 20(1)(c)).
• This means he loses control of his property – he cannot sell, mortgage, or dispose of his
assets.
