Insolvent Estate Asset Claim

Summary

Under South Africas Insolvency Act 24 of 1936, any assets acquired after sequestration but before rehabilitation are part of the insolvent estate. The trustee can claim these assets for creditors benefit. Therefore, Kabelo must deliver the car to the trustee, Dennis, as it forms part of the insolvent estate.

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Kabelo’s estate was sequestrated in * and he has not yet been rehabilitated. Dennis was appointed as the trustee of the insolvent estate. The assets in Kabelo’s estate were insufficient to cover the sequestration costs. As a result, all his creditors had to pay a contribution and the concurrent creditors did not receive dividends. Kabelo recently won a motor vehicle worth R200 * in a competition which was run by the Mall of South Africa. When Dennis heard of the news, he claimed delivery of the car. Kabelo really likes the car and wants to keep the car. Kabelo comes to you for advice. He wants to know whether he has to deliver the car to the trustee or if there are ways he could keep the car. By referring to relevant legislation, advise Kabelo.
In Gauteng, under the Insolvency Act * of *:
- All assets acquired after sequestration but before rehabilitation form part of the insolvent estate.
- The trustee has a right to claim such assets for the benefit of creditors.
Therefore, Kabelo must deliver the car to the trustee, Dennis.
Kabelo’s estate was sequestrated in * and he has not yet been rehabilitated. Dennis was appointed as the trustee of the insolvent estate. The assets in Kabelo’s estate were insufficient to cover the sequestration costs. As a result, all his creditors had to pay a contribution and the concurrent creditors did not receive dividends. Kabelo recently won a motor vehicle worth R200 * in a competition which was run by the Mall of South Africa. When Dennis heard of the news, he claimed delivery of the car. Kabelo really likes the car and wants to keep the car. Kabelo comes to you for advice. He wants to know whether he has to deliver the car to the trustee or if there are ways he could keep the car. By referring to relevant legislation, advise Kabelo in detail of the facts of his case and whether he can keep the car he won.
Hey! According to the Insolvency Act * of * in South Africa:
- Any assets acquired after sequestration but before rehabilitation become part of the insolvent estate.
- The trustee has the right to claim these assets for the benefit of the creditors.
So, unfortunately, Kabelo will need to deliver the car to the trustee, Dennis.