Question
hi please may you help. Mr Case Study's estate had sufficient assets to enable creditors to benefit from the sequestration. However, most of his assets
hi please may you help.
Mr Case Study's estate had sufficient assets to enable creditors to benefit from the sequestration. However, most of his assets were destroyed by fire prior to the finalisation of the liquidation accounts and the distribution thereof. After the finalisation of the free residue account, there were insufficient funds available to defray all administration expenses, and a deficit balance of R10 000 was realised. Without considering the afore-mentioned predicament, his creditors lodged the following claims against the sequestrated estate: I. Claims by employees amounted to R15 000. II. Panda bank for an overdraft amount of R10 000. III. Outstanding VAT payable to SARS amounted to R18 000 IV. An amount of R14 000 payable to City of Johannesburg for rates and taxes. V. Unsecured loan of R10 000 from Phumelela Venture Bank. 1.1 You are required to critically discuss the concept of "danger of contribution" and how it affects claims lodged by creditors. (15) 1.2 You are required to determine the contribution to be made by the creditors should they lodge claims against the sequestrated estate.
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