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CHAPTER 2 - VOLUNTARY SURRENDER - MRL3701 questions and answers
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CHAPTER 2 - VOLUNTARY SURRENDER - MRL3701 questions and answers
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CHAPTER 2 - VOLUNTARY SURRENDER - MRL3701CHAPTER 2 - VOLUNTARY SURRENDER
- MRL3701
A DEBTOR WHO HAS NO ASSETS AND ONLY LIABILITIES CANNOT SURRENDER HIS
ESTATE. - questions and answers-True - a logical result of the requirement that the debtor must
own sufficient property to meet the costs of sequestration is that a debtor who has no assets
and only liabilities cannot surrender his estate.
DEBTORS ESTATE INSOLVENT - questions and answers-1. if amount of total liabilities
exceeds the value of all of his assets
2. generally determined by reference to the statement of affairs which he is required to prepare
and file
3. Court not bound by valuations in statement
4. test is whether it is established that the debtor is without funds to pay his debts in full and its
improbable that the assets will realize enough for this purpose.
DESCRIBE WHAT THE COURT MUST BE CONVINCES OF PRIOR TO GRANTING AN
ORDER FOR THE VOLUNTARY SURRENDER OF TENZA'S ESTATE - questions and
answers-I.t.o. Section 6(1) of the Insolvency Act, the court must be satisfied that
a) all the prescribed formalities have been adhered to
b) Tenza's estate is indeed insolvent
c) there is sufficient realisable property in the free residue of Tenza's estate to defray the costs
of sequestration.
d) it will be to the advantage of Tenza's creditors if his estate is sequestrated.
EXPLAIN WHETHER ONE OF THE PARTNERS OR ONE OF THE SPOUSES
RESPECTIVELY MAY APPLY FOR THE SEQUESTRATION OF A PARTNERSHIP ESTATE OR
THE JOINT ESTATE OF PERSONS MARRIED IN COMMUNITY OF PROPERTY - questions
and answers-In terms of Section 3(2) of the Insolvency Act, all the partners (except partners en
commandite) must apply for the surrender of the partnership estate. I.t.o. Section 17(4) of the
Matrimonial Property Act 88 of 1984, in a marriage in community of property the spouses must
apply for the surrender of their joint estate.
FREE RESIDUE SUFFICIENT TO PAY COSTS OF SEQUESTRATION - questions and
answers-1. Includes not only costs of surrender but also all the general costs of administration
(s97)
2. Free residue defined in s 2 - THAT PORTION OF THE ESTATE WHICH IS NOT SUBJECT
TO ANY RIGHT OF PREFERENCE BY REASON OF ANY SPECIAL MORTGAGE, LEGAL
HYPOTHEC, PLEDGE OR RIGHT OF RETENTION.
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