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South African Insolvency Insights
Summary
In South African insolvency law, rehabilitation cannot be applied for if no claims are proved within six months. A lessor has a tacit hypothec over a lessees movable property if rent is owed. When married out of community of property, the solvent spouses assets do not vest in the trustee upon sequestration of the insolvent spouse’s estate. A lease does not automatically terminate if a lessee becomes insolvent. A voidable preference occurs when a debtor prefers one creditor over others. Preferential creditors are paid from secured assets, not the free residue. Trustees can choose to continue or cancel contracts not fully performed before sequestration. It is the estate, not the individual, that is sequestrated. Estates of those unable to manage their affairs can be sequestrated. Credit providers can repossess items without refunding paid installments if payments default.Full Conversation
Choose the correct answer: / Kies die korrekte antwoord:
ABC Ltd. leases premises to Andy where he runs a printing business. If Andy owes rent to ABC Ltd., the company as the lessor has a tacit hypothec over the movable assets on the premises, such as the printers. /
ABC Bpk. verhuur ‘n perseel aan Andy waar hy ‘n drukkery besigheid bedryf. Indien Andy huurgeld verskuldig is aan ABC Bpk., het ABC Bpk. as verhuurder ‘n stilswyende hipoteek oor die roerende bates op die perseel, soos byvoorbeeld die drukkers.
Question * Answer
a.
True/Waar
b.
False/Onwaar
The correct answer is:
a. True/Waar
In South African law, a lessor has a tacit hypothec over the lessee's movable property on the leased premises if rent is owed.
a. True/Waar
In South African law, a lessor has a tacit hypothec over the lessee's movable property on the leased premises if rent is owed.
Choose the correct answer: / Kies die korrekte antwoord:
Where persons are married out of community of property, the solvent spouse's assets also vest in the trustee in case of sequestration of the insolvent spouse’s estate. For this purpose, the definition of “spouse” in the Insolvency Act includes persons who live together and persons who have concluded a civil union. /
Waar persone buite gemeenskap van goed getroud is, vestig die solvente gade se bates ook in die kurator in geval van sekwestrasie van die insolvente gade se boedel. Vir hierdie doeleinde sluit die definisie van “gade” in die Insolvensiewet persone in wat saam woon en persone wat ‘n burgerlike verbintenis gesluit het.
Question * Answer
a.
True/Waar
b.
False/Onwaar
The correct answer is:
b. False/Onwaar
In South African law, when married out of community of property, the solvent spouse's assets do not automatically vest in the trustee in case of sequestration of the insolvent spouse’s estate. The definition of "spouse" in the Insolvency Act does not include persons merely living together without a formal marriage or civil union.
b. False/Onwaar
In South African law, when married out of community of property, the solvent spouse's assets do not automatically vest in the trustee in case of sequestration of the insolvent spouse’s estate. The definition of "spouse" in the Insolvency Act does not include persons merely living together without a formal marriage or civil union.
Choose the correct answer: / Kies die korrekte antwoord:
Ben leases an apartment from Christiaan (lessor). Ben becomes insolvent. If the trustee of Ben’s estate fails to inform Christiaan whether the lease agreement will be terminated or not, the lease agreement will automatically terminate. / Ben huur ‘n woonstel by Christiaan (verhuurder). Ben word insolvent. Indien die kurator van Ben se boedel versuim om vir Christiaan in te lig of die huurkontrak beëinding gaan word of nie, sal die huurkontrak outomaties beëindig.
Question * Answer
a.
True/Waar
b.
False/Onwaa
Case Rating: *
The correct answer is:
b. False/Onwaar
In South African law, if a lessee becomes insolvent, the lease does not automatically terminate if the trustee does not inform the lessor. The trustee needs to decide whether to continue or terminate the lease.
The correct answer is:
b. False/Onwaar
In South African law, if a lessee becomes insolvent, the lease does not automatically terminate if the trustee does not inform the lessor. The trustee needs to decide whether to continue or terminate the lease.
Choose the correct answer: / Kies die korrekte antwoord:
Zane knows that his liabilities exceed his assets and hears that his creditors want to bring an application for the compulsory sequestration of his estate. He borrowed money from his sister and feels bad that he has not repaid her yet. He gives his sister his brand new Apple Iphone * Pro to settle the debt. This is an example of: /
Zane weet sy laste oorskry sy bates en hoor dat sy skuldeisers ‘n aansoek om verpligte sekwestrasie van sy boedel wil bring. Hy het by sy suster geld geleen en voel sleg dat hy haar nog nie terugbetaal het nie. Hy gee vir sy suster sy splinternuwe Apple Iphone * Pro om die skuld te vereffen. Hierdie is ‘n voorbeeld van ‘n:
Question * Answer
a.
A voidable preference. / Vernietigbare voorkeur.
b.
An undue preference. / Onbehoorlike voorkeur.
c.
Collusion. / Samespanning.
d.
A disposition without value. / Vervreemding sonder teenwaarde.
Case Rating: *
The correct answer is:
a. A voidable preference. / Vernietigbare voorkeur.
In South African insolvency law, a voidable preference occurs when a debtor, knowing that they are insolvent, makes a payment or transfer to a creditor which has the effect of preferring that creditor over others.
The correct answer is:
a. A voidable preference. / Vernietigbare voorkeur.
In South African insolvency law, a voidable preference occurs when a debtor, knowing that they are insolvent, makes a payment or transfer to a creditor which has the effect of preferring that creditor over others.
Choose the correct answer: / Kies die korrekte antwoord:
Preferent creditors are paid from the free residue of an insolvent estate. / Preferente skuldeisers word betaal uit die vrye oorskot van ‘n insolvente boedel.
Question * Answer
a.
True/Waar
b.
False/Onwaar
Case Rating: *
In South African insolvency law, preferential creditors are typically paid from the proceeds of the assets secured for their claims before the free residue is distributed. So, the correct answer is:
b. False/Onwaar
In South African insolvency law, preferential creditors are typically paid from the proceeds of the assets secured for their claims before the free residue is distributed. So, the correct answer is:
b. False/Onwaar
Choose the correct answer: / Kies die korrekte antwoord:
AB is insolvent. Before the sequestration order, he purchased and paid for a car. The car has not yet been delivered by the seller. Therefore, the trustee of AB’s insolvent estate may elect to continue or cancel the contract. /
AB is insolvent. Voor die sekwestrasiebevel het hy ‘n motor gekoop en daarvoor betaal. Die motor is nog nie deur die verkoper afgelewer nie. Daarom kan die kurator van AB se insolvente boedel kies om die kontrak in stand te hou of te kanselleer.
Question * Answer
a.
True/Waar
b.
False/Onwaar
Case Rating: *
The correct answer is a. True/Waar. In South African insolvency law, if a contract was entered into but not yet fully performed before sequestration, the trustee has the discretion to either continue with or cancel the contract.
The correct answer is a. True/Waar. In South African insolvency law, if a contract was entered into but not yet fully performed before sequestration, the trustee has the discretion to either continue with or cancel the contract.
Choose the correct answer: / Kies die korrekte antwoord:
During sequestration, it is the insolvent and not his estate that is sequestrated. / Gedurende sekwestrasie, is dit die insolvent en nie sy boedel wat sekwestreer word.
Question * Answer
a.
True/Waar
b.
False/Onwaar
Case Rating: *
The correct answer is b. False/Onwaar. In South African insolvency law, it is the insolvent's estate, not the insolvent individual, that is sequestrated.
The correct answer is b. False/Onwaar. In South African insolvency law, it is the insolvent's estate, not the insolvent individual, that is sequestrated.
Choose the correct answer: / Kies die korrekte antwoord:
The estates of those who are unable to take care of their own affairs (e.g. prodigals) can also be sequestrated. / Die boedels van diegene wat nie in staat is om na hul eie belange om te sien nie (bv. verkwisters) is ook vatbaar vir sekwestrasie.
Question * Answer
a.
True/Waar
b.
False/Onwaar
Case Rating: *
The correct answer to Question * is a. True/Waar. In South African law, the estates of individuals who are unable to manage their own affairs, such as prodigals, can be subject to sequestration. If you have any other questions, feel free to ask!
The correct answer to Question * is a. True/Waar. In South African law, the estates of individuals who are unable to manage their own affairs, such as prodigals, can be subject to sequestration. If you have any other questions, feel free to ask!
Choose the correct answer: / Kies die korrekte antwoord:
Nandi is busy with her clerkship and intends to become a Chartered Accountant. She regularly travels to clients and purchases a brand new Volkswagen Polo on credit from Volkswagen. If Nandi stops paying her monthly instalment, Volkswagen, as the credit provider can claim the car. Volkswagen will however have to repay Nandi the instalments that she has already paid. /
Nandi is besig met haar klerkskap en beoog om ‘n Geoktrooieerde Rekenmeester te word. Sy reis gereeld na kliënte en koop vir haar ‘n splinternuwe Volkswagen Polo op krediet by Volkswagen. Indien Nandi ophou om haar maandelikse paaiement aan Volkswagen te betaal, kan Volkswagen, as kredietgewer, die motor opeis. Volkswagen moet dan egter die paaiemente wat Nandi reeds betaal het, aan haar terugbetaal.
Question * Answer
a.
True/Waar
b.
False/Onwaar
Case Rating: *
The correct answer to your question is:
b. False/Onwaar
In South African credit law, if Nandi defaults on her payments, Volkswagen can repossess the car, but they are not required to refund the instalments she has already paid. If you have more questions, feel free to ask!
The correct answer to your question is:
b. False/Onwaar
In South African credit law, if Nandi defaults on her payments, Volkswagen can repossess the car, but they are not required to refund the instalments she has already paid. If you have more questions, feel free to ask!
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