Question $5$

$(10$ marks$)$

You are a paralegal at a prestigious insolvency law firm. One of your clients, Mr Nkosi, comes to the firm you are working at$,$ to ask for legal advice.

Answer the following questions:

$5\mathrm{.}1$ Indicate what effect sequestration has on civil proceedings that have been instituted against the insolvent debtor in relation to the insolvent estate before a trustee has been appointed.

$(1)$

$5\mathrm{.}2$ Explain what a creditor, applying for compulsory sequestration, must prove before a sequestration order will be granted by the court.

$(4)$