INLA 6211 - Ice Task 1
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Application for voluntary surrender - on which of the following parties is the applicant debtor not required to serve a copy of the notice ?
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Each creditor
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The Master
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SARS
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Trade union and employees
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INLA 6211 - ICE task 1 is a focused assessment exploring key aspects of insolvency law, including voluntary surrender, compulsory sequestration, and trustee responsibilities. It tests understanding of legal procedures and implications for debtors, creditors, and trustees, essential for legal professionals in this field.
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- 2.
Choose the incorrect statement. An application for compulsory sequestration will be granted if the court is satisfied that :
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It will be to the advantage of creditors
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There is reason to believe that it will be to the advantage of creditors
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A creditor has a liquidated claim of at least R100
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The debtor has committed an act of insolvency
Correct Answer
A. There is reason to believe that it will be to the advantage of creditorsExplanation
The incorrect statement is "There is reason to believe that it will be to the advantage of creditors." The correct statement is that "An application for compulsory sequestration will be granted if the court is satisfied that it will be to the advantage of creditors." The incorrect statement implies that there is only a reason to believe it will be to the advantage of creditors, while the correct statement states that the court must be satisfied that it will be to the advantage of creditors.Rate this question:
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- 3.
Which one of the following is incorrect : The insolvent estate remains vested in the trustee until
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The sequestration order has been discharged by the court
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The creditors accepted an offer of composition made by the insolvent
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All the debts have been paid in full
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A rehabilitation order has been granted
Correct Answer
A. All the debts have been paid in fullExplanation
The correct answer is "All the debts have been paid in full." This statement is incorrect because even if all the debts have been paid in full, the insolvent estate does not automatically cease to be vested in the trustee. The trustee may still have other duties and responsibilities even after all the debts have been settled.Rate this question:
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- 4.
The insolvent's right to earn and recover income relates only to lawful income. If the insolvent obtains income from an unlawful sources, it is not excluded from his insolvent estate and he cannot keep any of it for himself.
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True
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False
Correct Answer
A. TrueExplanation
The explanation for the correct answer is that an insolvent person's right to earn and recover income only applies to lawful sources of income. If the insolvent individual receives income from an unlawful source, it is considered part of their insolvent estate and they are not allowed to keep any of it for themselves. Therefore, the statement is true.Rate this question:
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- 5.
Choose the correct option : A trustee must vacate his office if :
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He is mentally incapable of performing his duties as trustee satisfactorily
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He is physically incapable of performing his duties as trustee satisfactorily
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The majority of creditors have requested in writing that he be removed
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He is convicted of theft, fraud, forgery, uttering a forged document, or perjury
Correct Answer
A. He is convicted of theft, fraud, forgery, uttering a forged document, or perjuryExplanation
A trustee must vacate his office if he is convicted of theft, fraud, forgery, uttering a forged document, or perjury. This is because these actions are considered illegal and dishonest, which undermines the trust and integrity required for the role of a trustee. It is important for a trustee to maintain a high level of ethical conduct and any criminal conviction related to dishonesty would disqualify them from continuing in the position.Rate this question:
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- 6.
Which of one the following types of dispositions is not voidable in terms of the Insolvency Act ?
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Disposition made in collusion with another person
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Disposition made in fraudem creditorum
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Disposition made not for value
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Disposition made with the intention to prefer one creditor over another
Correct Answer
A. Disposition made in fraudem creditorumExplanation
A disposition made in fraudem creditorum refers to a transfer of assets or property with the intention to defraud or deceive creditors. This type of disposition is not voidable under the Insolvency Act, meaning it cannot be reversed or set aside. The Act recognizes the seriousness of fraudulent transfers and does not provide any protection or remedy for such dispositions.Rate this question:
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- 7.
A claim for funeral expenses is classified as a secured claim.
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True
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False
Correct Answer
A. FalseExplanation
A claim for funeral expenses is not classified as a secured claim. Secured claims are those that are backed by collateral, such as a mortgage or a car loan. Funeral expenses, on the other hand, are considered unsecured claims. Unsecured claims are not backed by any specific asset and are typically paid out of the remaining assets of the estate after secured claims and administrative expenses have been satisfied.Rate this question:
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- 8.
Choose the incorrect option. Rehabilitation may be sought in the following circumstances :
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Full payment of all proved claims
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No claims proved after 6 months
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Composition of not less than 60 cents in the rand
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12 months have elapsed from the confirmation by the Master of the first account in the estate
Correct Answer
A. Composition of not less than 60 cents in the randExplanation
Rehabilitation may be sought in various circumstances, such as full payment of all proved claims, no claims proved after 6 months, and 12 months have elapsed from the confirmation by the Master of the first account in the estate. However, the option "Composition of not less than 60 cents in the rand" is incorrect because it does not fit the criteria for seeking rehabilitation. The phrase "60 cents in the rand" suggests a specific monetary value, which is not a valid condition for rehabilitation.Rate this question:
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- 9.
As a general rule, sequestration suspends or puts an end to the contract.
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True
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False
Correct Answer
A. FalseExplanation
Sequestration does not suspend or put an end to the contract as a general rule. Sequestration refers to the process of setting aside funds or assets to satisfy a debt or legal claim. It involves the temporary seizure of property or assets until a debt or claim is resolved. It does not automatically terminate contracts but rather freezes the assets or funds involved in the contract until the legal issue is resolved. Therefore, the correct answer is False.Rate this question:
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Current Version
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Mar 19, 2023Quiz Edited by
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May 14, 2019Quiz Created by
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