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Section 48 of Insolvency Act CAP 53: 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 bankrupt could have exercised in respect of that property for the bankrupt's own benefit, vest in the Official Receiver.
(2) Despite subsection (1), the Court may, on the application by a creditor or other person interested in the bankruptcy, allow proceedings that had already begun before the bankruptcy commenced to continue on such terms as the Court considers appropriate.
(3) Within thirty days after the date of the bankruptcy order, the Official Receiver shall, subject to subsection (4)—
(a) publish a notice advertising the order—
(i) once in the Gazette; and
(ii) once in a newspaper widely circulating in the area in which the bankrupt resides; or
(b) if the Court directs that the order be advertised in some other publication, publish such a notice in that other publication.
(4) If the bankrupt has appealed against the order or has applied for its annulment, the Court may order the Official Receiver not to advertise the bankruptcy order, but only if it is satisfied that there are compelling reasons for doing so.
(5) Subsection (1) is subject to section 106.

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Disclaimer: This document is not to be taken as legal advise.

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