Definitions and the Applications

Section 8

Acts of insolvency

A debtor commits an act of insolvency—

(a)    if he leaves the Republic or being out of the Republic remains absent therefrom, or departs from his dwelling or otherwise absents himself, with intent by so doing to evade or delay the payment of his debts;

(b)    if a court has given judgement against him and he fails, upon the demand of the officer whose duty it is to execute that judgement, to satisfy it or to indicate to that officer disposable property sufficient to satisfy it, or if it appears from the return made by that officer that he has not found sufficient disposable property to satisfy the judgement;

(c)    if he makes or attempts to make any disposition of any or his property which has or would have the effect of prejudicing his creditors or of preferring one creditor above another;

(d)    if he removes or attempts to remove any of his property with intent to prejudice his creditors or to prefer one creditor above another;

(e)    if he makes or offers to make any arrangement with any of his creditors for releasing him wholly or partially from his debts;

(f)    if, after having published a notice of surrender of his estate which has not lapsed or been withdrawn in terms of section six or seven, he fails to comply with the requirements of subsection (3) of section four or lodges, in terms of that subsection, a statement which is incorrect or incomplete in any material respect or fails to apply for the acceptance of the surrender of his estate on the date mentioned in the aforesaid notice as the date on which such application is to be made;

(g)    if he gives notice in writing to any one of his creditors that he is unable to pay any of his debts;

(h)    if, being a trader, he gives notice in the Gazette in terms of subsection (1) of section thirty-four, and is thereafter unable to pay all his debts.