Representation at Creditors Meetings

Proving Claims against an Insolvent Estate
When dealing with an insolvent estate, only a liquidated claim that arose before and existed at the date of sequestration, and that did not prescribe at that date is capable of being proved. A liquidated claim is a claim for an amount that is determined, whether the determination is the result of an agreement, a judgment of a court, or otherwise.
However, a non-liquidated claim may still be tendered at a meeting of creditors. The claim is to be deemed to have been proved against the estate at such meeting where the trustee (with the permission of either other creditors or the Master of the High Court) has compromised or admitted it or it has been settled by a judgment of a court.

There are several types of claims that can be proved against an insolvent estate, including:

1. Secured Claim: A secured claim is one in respect of which a creditor holds security, i.e., has a preferent right over the property of an insolvent estate in respect of a landlord's legal hypothec, a right of retention, or a special mortgage.
2. Preferent Claim: A creditor's claim is preferent where he has a right to payment "out of" the property of the estate which is enforceable before other creditors' rights. For example, a landlord's legal hypothec or a holder of a general notarial bond who is not in possession of the debtor's movable property.
3. Concurrent Claim: A concurrent claim is one that is neither secured nor preferent in terms of the Insolvency Act.
4. Conditional Claim: A conditional claim is one that is dependent on a condition. A "condition" is one which has the result that, pending the fulfillment thereof, the claim is unenforceable.
5. Prescribed Claim: A claim that has prescribed as of the date of sequestration is incapable of being proved against the estate.

A claim can be proved at any time before the final distribution of the estate. A creditor may delay proof of his claim while there exists a danger of a contribution being levied against creditors who prove claims.

The claim must be submitted by way of an affidavit, together with the documents supporting the claim, with the officer who is to preside at the meeting. A prescribed form is available and can be obtained from the Trustee or Liquidator of the estate.

At a meeting of creditors, all submitted claims will either be admitted or rejected by the presiding officer. The presiding officer's decision to reject a proved claim may be taken on review by the unsuccessful claimant.