MRL3701
ASSIGNMENT 1
SEMESTER - 1
DUE DATE: 25 MARCH
2025
"Elevate Your Excellence: Where Distinction Meets Assurance in Every Assignment!"
, MRL3701 ASSIGNMENT 1
SEMESTER 1 – 2025
UNIQUE NUMBER: 833485
DUE DATE: 25 MARCH 2025
QUESTION:
Thabo owes an amount of R2 567 374.00 to his creditors. Since Thabo’s retrenchment by his
long-standing employer in March 2024, Thabo has been experiencing ongoing financial
difficulty. He has failed to pay his debts over the past few months, and since 30 November
2024 his liabilities have exceeded his assets. Maria is one of Thabo’s creditors, who is owed
an amount of R320 000 by Thabo. Thabo’s debt to Maria was due and payable on 5 January
2025, but Thabo failed to pay the debt. Disappointed at this, Maria undertook an
investigation into Thabo’s financial affairs. She has established that Thabo owns an
apartment valued at R2 250 000 and furniture valued at R300,000.
She has also discovered that Thabo had owed his cousin an amount of R400,000, which was
due and payable only on 30 April 2025, and that Thabo had made an early repayment in full
to his cousin on 29 January 2025. Thabo had wanted to ensure that should one of his
creditors apply for the sequestration of his estate, his family members would not suffer any
financial loss.
With the above in mind, discuss whether Maria is likely to be successful in an application for a
court order for the sequestration of Thabo’s estate. Include in your discussion the
requirements she must prove to succeed with such an application.
1
, SUGGESTED ANSWER TO ASSESSMENT 1
Introduction:
Maria, as a creditor, seeks to apply for the sequestration of Thabo’s estate. In terms of The
Insolvency Act 24 of 1936, she must meet certain legal requirements for a successful
application. This discussion examines the relevant legal principles, applies them to the facts,
and determines the likelihood of success in sequestrating Thabo’s estate.
ANSWER CONTINUED ON THE NEXT PAGE
2
ASSIGNMENT 1
SEMESTER - 1
DUE DATE: 25 MARCH
2025
"Elevate Your Excellence: Where Distinction Meets Assurance in Every Assignment!"
, MRL3701 ASSIGNMENT 1
SEMESTER 1 – 2025
UNIQUE NUMBER: 833485
DUE DATE: 25 MARCH 2025
QUESTION:
Thabo owes an amount of R2 567 374.00 to his creditors. Since Thabo’s retrenchment by his
long-standing employer in March 2024, Thabo has been experiencing ongoing financial
difficulty. He has failed to pay his debts over the past few months, and since 30 November
2024 his liabilities have exceeded his assets. Maria is one of Thabo’s creditors, who is owed
an amount of R320 000 by Thabo. Thabo’s debt to Maria was due and payable on 5 January
2025, but Thabo failed to pay the debt. Disappointed at this, Maria undertook an
investigation into Thabo’s financial affairs. She has established that Thabo owns an
apartment valued at R2 250 000 and furniture valued at R300,000.
She has also discovered that Thabo had owed his cousin an amount of R400,000, which was
due and payable only on 30 April 2025, and that Thabo had made an early repayment in full
to his cousin on 29 January 2025. Thabo had wanted to ensure that should one of his
creditors apply for the sequestration of his estate, his family members would not suffer any
financial loss.
With the above in mind, discuss whether Maria is likely to be successful in an application for a
court order for the sequestration of Thabo’s estate. Include in your discussion the
requirements she must prove to succeed with such an application.
1
, SUGGESTED ANSWER TO ASSESSMENT 1
Introduction:
Maria, as a creditor, seeks to apply for the sequestration of Thabo’s estate. In terms of The
Insolvency Act 24 of 1936, she must meet certain legal requirements for a successful
application. This discussion examines the relevant legal principles, applies them to the facts,
and determines the likelihood of success in sequestrating Thabo’s estate.
ANSWER CONTINUED ON THE NEXT PAGE
2
