, 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.
If the court grants an order for the sequestration of Bongani’s
estate, it would have serious legal, financial, and personal
consequences for him. In South African insolvency law,
sequestration refers to the legal process through which a
natural person's estate is declared insolvent and placed under
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.
If the court grants an order for the sequestration of Bongani’s
estate, it would have serious legal, financial, and personal
consequences for him. In South African insolvency law,
sequestration refers to the legal process through which a
natural person's estate is declared insolvent and placed under
