MRL3701 Assignment 2
(COMPLETE ANSWERS)
Semester 2 2025 - DUE
9 September 2025
[Document subtitle]
[School]
[Course title]
, 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.
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.
Context Recap:
Bongani is insolvent (liabilities exceed assets since 28 Oct 2024).
Total debts: R2,500,000.
Debt to Flora: R280,000 (due 8 Jan 2024, unpaid).
Bongani owns assets worth: R1,250,000 (flat) + R200,000 (vehicle) = R1,450,000.
Flora wants to apply for sequestration.
The court grants sequestration.
What is Sequestration?
Sequestration is the legal process of declaring a person insolvent and placing their estate under
the control of a trustee to ensure equitable distribution of assets among creditors.
(COMPLETE ANSWERS)
Semester 2 2025 - DUE
9 September 2025
[Document subtitle]
[School]
[Course title]
, 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.
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.
Context Recap:
Bongani is insolvent (liabilities exceed assets since 28 Oct 2024).
Total debts: R2,500,000.
Debt to Flora: R280,000 (due 8 Jan 2024, unpaid).
Bongani owns assets worth: R1,250,000 (flat) + R200,000 (vehicle) = R1,450,000.
Flora wants to apply for sequestration.
The court grants sequestration.
What is Sequestration?
Sequestration is the legal process of declaring a person insolvent and placing their estate under
the control of a trustee to ensure equitable distribution of assets among creditors.
