Summary Installment Order
This is a formal arrangement where the debtor pays off his debts in instalments. This plan is applicable to an unsecured debt that does not exceed five hundred thousand shillings (Kshs. 500,000/=). Upon successful approval of the proposal, the debtor is required to pay off the debts within three (3) years or other period agreed upon.
Where an application for admission to the Summary Installment Order is presented to the Official Receiver the following actions shall be undertaken:
- State Counsel will go through the application.
- If the application 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.
- Write to the creditors to present their response to the debtor’s application
- Where no response is received from the creditors, do a reminder.
- Convene a creditors’ meeting.
- Investigate the affairs of the debtor.
- Make terms for the issuance of the order
- If Satisfied that the debtor is eligible, the Official Receiver shall issue a Summary Installment Order
- Notify creditors of the issuance of the order.