MRL3701 Assignment 2
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 9
September 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, 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.
A sequestration order, if granted by the court, would have significant and far-reaching effects on
Bongani. Here's a discussion of these effects, primarily guided by the South African Insolvency
Act 24 of 1936:
1. Vesting of Assets in the Master and Trustee:
Divestment of Estate: The primary effect of a sequestration order is that Bongani will be
divested of his estate, meaning he will lose control over his assets. His entire estate will
vest in the Master of the High Court, and subsequently in a court-appointed trustee.
Assets Included: This includes all movable and immovable property belonging to
Bongani at the date of sequestration, and generally, any property he acquires between the
date of sequestration and his rehabilitation. This would include his flat (valued at
R1,250,000) and his motor vehicle (valued at R200,000).
Exceptions: While most assets vest in the trustee, certain assets are excluded, such as
basic necessities (clothing, bedding, etc.), certain pension benefits, and compensation for
personal injuries.
(COMPLETE ANSWERS)
Semester 2 2025 - DUE 9
September 2025
NO PLAGIARISM
[Pick the date]
[Type the company name]
, 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.
A sequestration order, if granted by the court, would have significant and far-reaching effects on
Bongani. Here's a discussion of these effects, primarily guided by the South African Insolvency
Act 24 of 1936:
1. Vesting of Assets in the Master and Trustee:
Divestment of Estate: The primary effect of a sequestration order is that Bongani will be
divested of his estate, meaning he will lose control over his assets. His entire estate will
vest in the Master of the High Court, and subsequently in a court-appointed trustee.
Assets Included: This includes all movable and immovable property belonging to
Bongani at the date of sequestration, and generally, any property he acquires between the
date of sequestration and his rehabilitation. This would include his flat (valued at
R1,250,000) and his motor vehicle (valued at R200,000).
Exceptions: While most assets vest in the trustee, certain assets are excluded, such as
basic necessities (clothing, bedding, etc.), certain pension benefits, and compensation for
personal injuries.
