MRL3701 Assignment 2 ANSWERS 2025 - DUE 9 September 2025

MRL3701 Assignment 2 2025 DUE 9 September 2025 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.