Section 41 of Insolvency Act CAP 53: Bankruptcy commences on making of bankruptcy order
A bankruptcy under this Act commences on the date and at the time when a bankruptcy order is made in respect of the debtor.
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- Section 42 - Date and time of bankruptcy order to be recorded
(1) On making a bankruptcy order, the Court shall record the date and time when the order was made.
(2) If the debtor is adjudged bankrupt on the application of the debtor, the Official Receiver...
- Section 43 - Registrar of the Court to notify trustee of bankruptcy order
As soon as practicable after the Court has made a bankruptcy order in respect of a debtor, the Registrar of the Court shall forward a copy of the order to the Official Receiver.
- Section 44 - Official Receiver to nominate bankruptcy trustee
(1) As soon as practicable after receiving a copy of a bankruptcy order, the Official Receiver shall nominate a qualified person to be bankruptcy trustee in respect of the debtor's property.
(2) In...
- Section 45 - Presumption that act was done, or transaction was entered into or made, after bankruptcy
If a doubt arises as to whether an act was done, or a transaction entered into or made, before or after the time when a bankruptcy commenced, it is to be presumed, until the contrary is proved, that...
- Section 46 - Bankruptcy order to be binding on all persons
A bankruptcy order becomes binding on the bankrupt and all other persons—
(a) on the expiry of the time within which an appeal may be lodged against the order; or
(b) if an appeal is lodged in...
- Section 47 - Official Receiver to maintain public register of undischarged and discharged bankrupts
(1) The Official Receiver shall establish and maintain a public register of undischarged and discharged bankrupts.
(2) The Official Receiver shall maintain the register in accordance with Division 2...
- Section 48 - What happens or is to happen on and after bankruptcy commences
(1) When a bankruptcy order commences—
(a) all proceedings to recover the bankrupt's debts are stayed; and
(b) the property of the bankrupt (whether in or outside Kenya), and the powers that the...
- Section 49 - Official Receiver to serve notice on bankrupt requiring the bankrupt to lodge statement of the bankrupt's financial position
(1) Within thirty days after receiving notice of a bankruptcy order, the Official Receiver shall serve on the bankrupt a notice—
(a) stating that a bankruptcy order has been made in respect of the...
- Section 50 - Bankrupt to lodge statement of financial position with bankruptcy trustee
(1) Within fourteen days after being served with the notice in accordance with section 49 (or within such extended period not exceeding sixty days as the Official Receiver may allow), the bankrupt...
- Section 51 - Creditors entitled to inspect and take copies of statement of bankrupt's financial position
(1) A person who in writing claims to be a creditor of the bankrupt is entitled, at all reasonable times
(either personally or through an agent—
(a) to inspect the statement of the bankrupt's...
- Section 52 - Official Receiver to convene first meeting of creditors
(1) The Official Receiver shall, subject to subsection (5), convene the first meeting of the bankrupt's creditors within the prescribed period, unless the Official Receiver decides, in accordance with...
- Section 53 - Circumstances in which Official Receiver may decide not to convene first meeting of creditors
(1) The Official Receiver may decide not to convene a first creditors' meeting if the Official Receiver—
(a) has sent to each creditor named in the statement of the bankrupt's financial position, and...
- Section 54 - Documents to be sent with notice of meeting
(1) The Official Receiver shall send the following documents with the notice of the first meeting of creditors—
(a) a summary of the bankrupt's statement of assets and liabilities;
(b) extracts...
- Section 55 - Power of creditors to requisition meeting
(1) If, in the case of a bankruptcy, the Official Receiver has not yet convened a first meeting of creditors, or has decided not to convene such a meeting, any creditor of the bankrupt may request the...
- Section 56 - Execution process not to be begin or continue after bankruptcy order advertised
(1) A creditor may not begin or continue an execution process in respect of the bankrupt's property or person for the recovery of a debt provable in the bankruptcy, after the Official...
- Section 57 - Effect of bankrupt's death after bankruptcy order
If a bankrupt dies after being adjudged bankrupt, the bankruptcy continues in all respects as if the bankrupt were still alive.
- Section 58 - Creditors' role at creditors' meetings
The role of the creditors in the bankruptcy primarily—
(a) to attend meetings of the creditors;
(b) to submit proofs of the debts of the bankrupt; and (c) to examine the bankrupt at those...
- Section 59 - Power to appoint bankruptcy trustee
(1) The power to appoint a person as a bankruptcy trustee in respect of a bankrupt's estate, or to fill a vacancy in such an appointment, is exercisable—
(a) except as provided by paragraph (b) or...
- Section 60 - Consequences of failure of creditors' meeting to appoint bankruptcy trustee
(1) If a meeting convened under section 52 or 55 is held but no one is appointed as bankruptcy trustee, the Official Receiver shall decide whether or not there is a need to make such an...
- Section 61 - Power of Official Receiver acting as bankruptcy trustee to appoint another person to act instead
(1) The Official Receiver may, at any time while acting as bankruptcy trustee in respect of a bankrupt's estate under a provision of this Division (other than section 62), appoint another qualified...
- Section 62 - Special case in which the Court may appoint bankruptcy trustee
(1) If a bankruptcy order is made when there is a supervisor of a summary instalment order approved in relation to the bankrupt under Division 2 of Part IV, the Court may, if it considers it...
- Section 63 - Powers of bankruptcy trustee
(1) A bankruptcy trustee may—
(a) with the approval of the creditor's committee, exercise of any of the powers specified in Part 1 of the First Schedule; and
(b) without that approval, exercise any...
- Section 64 - Bankruptcy trustee not to sell bankrupt's property before first creditors' meeting
(1) A bankruptcy trustee may sell property of the bankrupt before the first meeting of creditors only if
—
(a) it is perishable or is likely to rapidly diminish in value;
(b) in that trustee's...
- Section 65 - Title of purchaser from bankruptcy trustee
The title of a purchaser of the bankrupt's property from a bankruptcy trustee under a document that is made in the exercise of the bankruptcy trustee's power of sale in the First Schedule may not be...
- Section 66 - Bankruptcy trustee to bank money and power to invest surplus
(1) A bankruptcy trustee shall establish and maintain a bank account in respect of each bankrupt estate administered by that trustee and shall pay into the relevant account all money that that trustee...
- Section 67 - Bankruptcy trustee may assign right to sue under this Act
(1) A bankruptcy trustee may, if the Court has first approved it, assign a right to sue that is conferred on the bankruptcy trustee by this Act.
(2) An application for such an approval may—
(a) be...
- Section 68 - Proceedings by bankruptcy trustee when bankrupt is partner in business partnership
(1) If a member of a business partnership is adjudged bankrupt, the Court may authorise the bankruptcy trustee to bring proceedings in the names of the bankruptcy trustee and the bankrupt's...
- Section 69 - Discharge or transfer of indenture of apprenticeship or articles of agreement on bankruptcy of employer
(1) If a person is apprenticed or is an articled clerk to an employer who is adjudged bankrupt, either of them may give notice to the bankruptcy trustee or the Official Receiver requesting that the...
- Section 70 - Bankruptcy trustee may apply for directions by the Court
(1) A bankruptcy trustee may apply to the Court for directions on any question concerning the operation of this Part.
(2) A bankruptcy trustee who acts under a direction of the Court discharges the...
- Section 71 - Application to the Court to reverse or modify bankruptcy trustee's decision
(1) A person (including the bankrupt or a creditor) whose interests, monetary or otherwise, are detrimentally affected by an act or decision to which this section applies may apply to the Court to...
- Section 72 - Bankruptcy trustee to keep proper accounting records
(1) A bankruptcy trustee shall—
(a) keep proper accounting records for each bankruptcy in the form and manner prescribed by the insolvency regulations; and
(b) if required by the Court to do so,...
- Section 73 - Bankruptcy trustee’s final statement of receipts and payments
(1) The bankruptcy trustee shall prepare a final statement of receipts and payments that complies with subsection (2)—
(a) as soon as practicable after the distribution of the final dividend has been...
- Section 74 - Audit of bankruptcy trustee's accounts
(1) If, in relation to a bankruptcy, the Official Receiver is not the bankruptcy trustee, the Official
Receiver may from time to time audit—
(a) the bankruptcy trustee's accounting records for any...
- Section 75 - Removal of bankruptcy trustee and vacation of office
(1) Except as otherwise provided by this section, a bankruptcy trustee appointed in respect of a bankrupt’s estate may be removed from office only by—
(a) an order of the Court; or
(b) a creditor's...
- Section 76 - When Official Receiver is released from obligations as bankruptcy trustee
(1) If a person has been appointed by the Court to replace the Official Receiver on his or her ceasing to hold office as bankruptcy trustee in respect of a bankrupt's estate, the Official Receiver is...
- Section 77 - When bankruptcy trustee, not being the Official Receiver, is released from obligation
(1) This section applies when a person other than the Official Receiver ceases hold office as a bankruptcy trustee.
(2) If the person has been removed from office by a meeting of the bankrupt’s...
- Section 78 - Vacancy in office of bankruptcy trustee
(1) This section applies to a vacancy in the office of bankruptcy trustee that has arisen because—
(a) the appointment of a person as bankruptcy trustee has failed to take effect; or
(b) when such...
- Section 79 - General control of bankrupt trustee by the Court
(1) If, in relation to the bankruptcy trustee in respect of a bankrupt's estate, a person (including the bankrupt or a creditor of the bankrupt) is dissatisfied with any act, omission to act or...
- Section 80 - Liability of bankruptcy trustee for misapplication of money, etc.
(1) Any of the following persons make an application to the Court for an order under this section relating to a bankruptcy trustee's administration of a bankrupt's estate— (a) the Official...
- Section 81 - Kinds of creditors' meetings
There are two kinds of creditors' meetings—
(a) the first meeting of creditors; and (b) subsequent creditors' meetings.
- Section 82 - Subsequent meetings of creditors
(1) The bankruptcy trustee may at any time convene a meeting of creditors after the first meeting of creditors.
(2) The bankruptcy trustee shall convene such a meeting if— (a) requested to do so by a...
- Section 83 - Meeting and resolution not defective for lack of notice
A meeting of creditors convened by notice to creditors, and a resolution passed at the meeting, is valid even if some creditors may not have received the notice, unless the Court orders otherwise.
- Section 84 - Appointment of Chairperson to conduct creditor’s' meetings
(1) The Chairperson of a creditors' meeting is the bankruptcy trustee or a person appointed by the bankruptcy trustee to be the Chairperson.
(2) However, if neither the bankruptcy trustee nor the...
- Section 85 - Power of Chairperson to adjourn creditors' meeting
The Chairperson of a creditors' meeting may adjourn the meeting from time to time and place to place.
- Section 86 - Bankruptcy trustee to report to creditors' meeting
If the bankruptcy trustee attends a creditors' meeting or an adjournment of the meeting, the bankruptcy trustee shall—
(a) report on the administration of the bankrupt's estate;
(b) give any...
- Section 87 - Who can attend creditors' meeting
(1) A person may attend a creditors' meeting—
(a) by being physically present at the time, date and place appointed for the meeting; or
(b) if the bankruptcy trustee makes it available, by means of...
- Section 88 - Bankrupt may be required to attend creditors' meeting and be questioned
(1) The bankrupt shall, if required by the bankruptcy trustee, attend all creditors' meetings by being physically present or present by an audio or audio-visual link.
(2) The following persons may...
- Section 89 - Attendance at creditors' meeting by non-creditors
A person who is not a creditor of the bankrupt may attend a creditors' meeting with the consent of— (a) the bankruptcy trustee; or
(b) the creditors attending the meeting, voting by ordinary...
- Section 90 - Minutes and record of creditors' meeting
(1) The bankruptcy trustee shall ensure that minutes are kept of each creditors' meeting.
(2) The minutes are invalid unless signed by the bankruptcy trustee or the Chairperson of the...
- Section 91 - Number of persons required for creditors' meeting to be valid
(1) A creditors' meeting is not valid unless at least the following persons attend— (a) the bankruptcy trustee or a person who represents the bankruptcy trustee; (b) a creditor or a person who...