, MRL3701 Assignment 1 Semester 2 Memo | Due 12 August 2025; 100%
CORRECT AND TRUSTED SOLUTIONS
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 believe it is in their best interests for both
of them to be 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 marks)
A sequestration order serves as a legal mechanism by which a natural
person’s estate is placed under the control of the Master of the High
Court and managed by a court-appointed trustee in terms of the
Insolvency Act 24 of 1936. The principal purpose of such an order is to
ensure the fair and orderly distribution of an insolvent debtor’s assets
among their creditors and to provide a structured resolution to
financial distress. In the context of South African law, the purpose of a
sequestration order can be understood in detail as follows:
1. Protection of Creditors’ Interests
The primary objective of a sequestration order is to safeguard the
collective interests of all creditors by preventing an individual debtor
from preferring certain creditors over others. Once an estate is
sequestrated, the debtor loses control over their estate, which is handed
over to a trustee whose duty is to realise the assets and distribute the
CORRECT AND TRUSTED SOLUTIONS
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 believe it is in their best interests for both
of them to be 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 marks)
A sequestration order serves as a legal mechanism by which a natural
person’s estate is placed under the control of the Master of the High
Court and managed by a court-appointed trustee in terms of the
Insolvency Act 24 of 1936. The principal purpose of such an order is to
ensure the fair and orderly distribution of an insolvent debtor’s assets
among their creditors and to provide a structured resolution to
financial distress. In the context of South African law, the purpose of a
sequestration order can be understood in detail as follows:
1. Protection of Creditors’ Interests
The primary objective of a sequestration order is to safeguard the
collective interests of all creditors by preventing an individual debtor
from preferring certain creditors over others. Once an estate is
sequestrated, the debtor loses control over their estate, which is handed
over to a trustee whose duty is to realise the assets and distribute the
