Compensation

Question 1

Secured Creditors:

Answer 1

Claim to a specific item:
1. Specific mortgage bond
-Immovable property
-Moveable property- Act or Natal before 1993
2. Lessor hypothec of movable property
3. Credit provider’s hypothec in the case of an installment agreement over the goods that have been sold
4. Pledge

Question 2

Preferent Creditors:

Answer 2

-Paid on free residue( money left after paying secured creditors)
1. S 96 Funeral costs & deathbed expenses to a maximum of R300.
2. S 97 Sequestration costs (e.g sheriff & master’s fees)
3. S 98 Execution costs (taxed costs) (costs that were incurred for the sale of assets)
4. S 98A Salaries of employees to a maximum of 3 months’ salary.
5. S 99 & 101 Workmens Compensation & Income tax & VAT & Taxes on Profit
6. S 102 General Notarial bond or a special bond (outside Natal) and which had been registered before 7 May 1993.
- If there are not sufficient funds in the free residue to satisfy each claim in full, each creditor will receive a pro rata share of his claim.

Question 3

Concurrent Creditors:

Answer 3

-Treated equally and they are not be paid according to a particular ranking where one creditor’s claim will precede the claim of another creditor (like with preferent creditors).

-Pro Rate share