100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary Law of insolvency: Ranking of creditors and any types of claims R50,00
Add to cart
Quickly navigate to
Preview
  2.  
  3. University Of The Western Cape (UWC)
  4.  
  5. Law of insolvency

Summary

Summary Law of insolvency: Ranking of creditors and any types of claims

1 review
 970 views  1 purchase

Comprehensive notes summarized from the Hockley's Insolvency Law 9th edition textbook.

Preview 1 out of 12  pages

Document information

  • March 2, 2017
  • 12
  • 2016/2017
  • Summary

Subjects

Written for

All documents for this subject (22)

1  review

review-writer-avatar

By: jacolues • 7 year ago

Seller

avatar-seller
Jennica1

Reviews received

Content preview

Topic 7: Ranking of creditors and any types of claims

Introduction

- Insolvent estate must be distributed among creditors according to their preference

Three types of creditors
- Concurrent creditors
- Preferent creditors
- Secured creditors

1. Concurrent creditors

- Refers to creditors who enjoy neither
o Preference
o Nor do they hold any secured claim against insolvent estate
o Hold no advantage over other creditors of insolvent
- Such creditors are only entitled to be paid from
o Free residue (that part of estate which remains after the preferent creditors have been
paid)

S103(1)(a) provides

- If not enough money left in free residue to pay all their claims in full (which is often the case)
o Concurrent creditors paid proportionally by way of a dividend

How are they ranked?

o All concurrent creditors are ranked equally amongst themselves

This means
o Dividend would apply equally to all concurrent claims

Example: 1

- If free residue amounts to R5000
o A has concurrent claim of R6000
o B has concurrent claim for R4000
Result is that
o Both A and B will receive a dividend of 50cents in the rand (one half of their respective
claims)
 A will receive R3000
 B will receive R2000




1

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Jennica1. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R50,00. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

50843 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R50,00  1x  sold
  • (1)
Add to cart
Added