WHAT IS BANKRUPTCY?
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:
- State Counsel will go through the petition.
- If the petition is properly drawn, approve the petition and indicating the amount to be paid by the petitioner
- Direct the petitioner to make payment of statutory fees at the BRS accounts office.
- State Counsel generate a Certificate of Compliance
- Open a file.
Where a Bankruptcy Order is issued:
- Advertise the Order in the Kenya Gazette within 30 days.
- Require the debtor to file a Statement of Affairs where necessary
- Convene a creditors’ meeting where necessary.