Bankruptcy is a legal process where you are declared unable to pay your debts. It can release you from most debts and allow you to have a fresh start. When bankrupt, a Trustee is appointed to manage your property. Bankruptcy automatically lapses after three (3) years is absolved of any personal liability for the debts specified in the order; if the discharge from bankruptcy is not opposed.

Where a Bankruptcy Petition is presented to the Official Receiver the following actions shall be undertaken:

  1. State Counsel will go through the petition.
  2. If the petition is properly drawn, approve the petition and indicating the amount to be paid by the petitioner
  3. Direct the petitioner to make payment of statutory fees at the BRS accounts office.
  4. State Counsel generate a Certificate of Compliance
  5. Open a file.

Where a Bankruptcy Order is issued:

  1. Advertise the Order in the Kenya Gazette within 30 days.
  2. Require the debtor to file a Statement of Affairs where necessary
  3. Convene a creditors’ meeting where necessary.
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