MRL3702 – Insolvency Law (Assignment 01, Semester 2 August 2025) – University of South Africa – 2025 – Model Answers-

Description: This document provides complete and well-structured solutions for Assignment 01 of MRL3702 – Insolvency Law, Semester 2, 2025. It covers key topics such as the purpose and effect of a sequestration order, the concursus creditorum, and the legal position on joint sequestration applications for spouses married out of community of property. The answers are aligned with South African insolvency legislation and relevant case law, making it a valuable resource for exam and assignment preparation. Keywords: sequestration order concursus creditorum Insolvency Act 24 of 1936 advantage to creditors joint estate community of property Ex parte Van den Berg Ex parte Vally De Wet NO v Jurgens Walker v Syfret NO individual application rehabilitation after insolvency South African insolvency law QUESTION: Thandeka and Owen are married out of community of property. They came to see you as their legal representative. Their separate businesses were affected by the COVID-19 pandemic. As a result, their finances have been affected and they are struggling to make ends meet. They have thought it in their best interests to both get sequestrated. To save on sequestration costs, they wish to bring only one application before the court, but to each sequestrate their own estates in that one application, since they are married out of community of property and do not have a joint estate. Answer the following questions based on the facts given above: a. Briefly explain the purpose of a sequestration order. (5) b. With reference to case law, discuss whether Thandeka and Owen can successfully apply for the sequestration of both estates in a single application. (5)