Question4 [40] You are at a family function at your house when your uncle, who knows that you are a second year Insolvency Law student, tells you that he made some dodgy investments and that his finances are now in a very bad state. He tells you that there is no prospects of him being able to pay his creditors and that he is considering to be declared insolvent due to his financial constraints.

4.1 Advise your uncle on a solution to declare him insolvent and get him out of his financial troubles and the procedures he will have to follow. (15)

4.2 Explain the difference between when he voluntary follows the process that you advise, rather than when creditors apply for the process and advise him, in your opinion, which process will be more favourable to him as the debtor. Motivate your viewpoint. (10)

4.3 Your uncle, asks you to explain if there will be any consequences for your aunt (your uncles wife), if he is declared insolvent due to his financial constraints. (15)