1. Choose the most correct statement or the best combination of statements as

Question

indicated in the options that follow the statements:
A. The notion of ‘becoming insolvent’, has a wider meaning than that of ‘being
sequestrated’.
B. The main objective of a sequestration order is to secure the orderly and equitable
distribution of a debtor’s assets where they are insufficient to meet the claims of all
his creditors.
C. A concursus creditorum is established only after the final sequestration order is
granted in an application for compulsory sequestration.
D. The law of insolvency exists primarily for the benefit of the insolvent.
E. An estate is a collection of assets and liabilities.

Answer 1

The best combination of statements, in terms of correctness and relevance, is:

B. The main objective of a sequestration order is to secure the orderly and equitable distribution of a debtor’s assets where they are insufficient to meet the claims of all his creditors.
D. The law of insolvency exists primarily for the benefit of the insolvent.
E. An estate is a collection of assets and liabilities.

These statements accurately reflect key principles in insolvency law: the purpose of sequestration, the aim of the law toward the insolvent party, and the definition of an estate in the context of insolvency.

Statement A is somewhat true but can be misleading depending on the legal context. Statement C is incorrect because while a concursus creditorum is established after a final sequestration order, preliminary actions and proceedings can also involve creditor participation.