Choose the most correct statement or the best combination of statements as indicated in the options that follow the statements.

Question

A. Sequestration and sequestration order refers only to a person's estate.

B. Sequestration results in only a few creditors being paid and most other creditors receiving nothing at all.

C. Apart from what is permitted by the Insolvency Act, nothing may be done which could diminish the estate assets or prejudice the rights of creditors.

D. If a debtor has a single creditor, the creditor will still be successful with a compulsory sequestration application.

E. Sequestration relieves a debtor of all claims instituted against him before rehabilitation.


Statements C and E are correct.


Statements A and C are correct.


Statements A and D are correct.


Statements B and D are correct.


Statements B and E are correct.

1 points

Question 18 of 20 Next QuestionUnsaved change Moving to the next question prevents changes to this answer.

Answer 1

The most correct statement or best combination of statements is:

Statements A and C are correct.

Here's a breakdown of the statements:

A. Sequestration and sequestration order refers only to a person's estate. - This is correct; sequestration pertains to the estate of the debtor.

B. Sequestration results in only a few creditors being paid and most other creditors receiving nothing at all. - This statement can be misleading, as it depends on the distribution of assets and doesn't universally apply.

C. Apart from what is permitted by the Insolvency Act, nothing may be done which could diminish the estate assets or prejudice the rights of creditors. - This is correct; the Insolvency Act has strict regulations to protect creditor rights.

D. If a debtor has a single creditor, the creditor will still be successful with a compulsory sequestration application. - This statement is not necessarily true; it requires more context regarding the debtor's financial situation and legal grounds for the application.

E. Sequestration relieves a debtor of all claims instituted against him before rehabilitation. - This statement is generally correct but can be context-dependent.

Thus, the combination of statements A and C is the most accurate.