CONTINUATION OF SU10

Question 1

RANKING OF CLAIMS:

Answer 1

an estate consists of encumbered and unencumbered assets.

Question 2

ENCUMBERED ASSETS:

Answer 2

a. INITIAL COSTS (s89)
these include:
-costs of maintaining, conserving & realizing the asset
-the trustee’s remuneration in regards of the asset
-a proportionate share of the Master’s fees
-if the asset is immovable, any tax which is, or will become due on it
b. Secured costs (s95)

Question 3

UNENCUMBERED COSTS:

Answer 3

1. funeral and death-bed expenses
2. costs of sequestration
3. costs of execution
4. salaries/wages of former employees of the insolvent
5. Statutory obligations
6. income tax

Question 4

SPECIAL RULES GOVERNING THE REALIZATION OF PARTICULAR ASSETS:

Answer 4

1. Goods subject to statutory liens
2. Rights acquired from the state in terms of a lease
3. Interest in close corporation
4. Movable property held as security
5. Immovable property held as security

Question 5

REALIZATION OF ASSETS:

Answer 5

-the trustee must realize assets for the benefit of creditors
-creditors may authorize the trustee to dispose of assets without receiving value in return provided:
-they act in good faith, and
-in the interest of the estate and the insolvent.

Question 6

Trustee may not realize certain assets, such as:

Answer 6

-wearing apparel and bedding
-household furniture and tools
-essential means of subsistence