Section 304 of Insolvency Act CAP 53: When application for interim order can be made
(1) An application to the Court for an interim order may be made if the debtor intends to make a proposal to the debtor's creditors under this Division for a composition in satisfaction of the debtor's debts or a scheme of arrangement of the debtor's financial affairs.
(2) The debtor shall ensure that the proposal provides for a person to act as supervisor of the voluntary arrangement to which the proposal relates.
(3) Only an authorised insolvency practitioner is eligible to act as supervisor of a voluntary arrangement.
(4) Subject to subsection (2), such an the application may be made—
(a) if the debtor is an undischarged bankrupt, by the debtor, the bankruptcy trustee of the debtor's estate or the Official Receiver; and (b) in any other case-by the debtor.
(5) An application may be made by a debtor who is an undischarged bankrupt only if the debtor has given notice of the proposal to the Official Receiver and, if there is one, the bankruptcy trustee of the debtor's estate.
(6) An application may not be made while a bankruptcy application made by the debtor is pending, if the Court has, under section 33, appointed an authorised insolvency practitioner to inquire into the debtor's financial affairs and to report on those affairs to the Court.
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- Section 305 - Effect of application for interim order
(1) While an application under section 304 for an interim order is pending, the following provisions apply:
(a) a landlord or other person to whom rent is payable by the debtor may exercise a right...
- Section 306 - Power of the Court to make interim order
(1) On the hearing of an application made under section 304, the Court may make an interim order if satisfied—
(a) that the debtor intends to make a proposal under this Division;
(b) that on the day...
- Section 307 - Provisional supervisor to report on debtor's proposal
(1) As soon as practicable after the making of an interim order, the provisional supervisor shall, before the order ceases to have effect, submit a report to the Court stating—
(a) whether, in that...
- Section 308 - Debtor's proposal and provisional supervisor's report
(1) This section applies if—
(a) a debtor intends to make a proposal under this Division;
(b) no interim order has been made in relation to the proposal and no application for such an order is...
- Section 309 - When provisional supervisor is to convene creditors' meeting to consider debtor's proposal
(1) If it has been reported to the Court under section 307 or 308 that a meeting of the debtor's creditors should be convened, the provisional supervisor shall, unless the Court otherwise directs,...
- Section 310 - Conduct of creditors' meeting: consideration of debtor's proposal
(1) The main purpose of a creditors' meeting convened under section 309 is to decide whether to approve the debtor's proposal (with or without modifications).
(2) At the beginning of the meeting,...
- Section 311 - Approval of debtor's proposal
(1) This section applies to the decisions taken at the meeting of creditors held in accordance with section 310 to consider a debtor's proposal (with or without modifications).
(2) The debtor's...
- Section 312 - Effect of approval of debtor's proposal by meeting of creditors or by the Court
(1) A debtor's proposal (with or without modifications) takes effect as a voluntary arrangement by the debtor on the day after the date on which it is approved by the Court by order made under section...
- Section 313 - Additional effect on undischarged bankrupt
(1) If the Court has approved a debtor's proposal in accordance with section 311(7)(a) and the debtor is an undischarged bankrupt—
(a) the bankrupt; or
(b) if the bankrupt has not made an...
- Section 314 - Right to challenge decision taken at creditors’ meeting
(1) Subject to subsection (3), any of the persons specified in subsection (2) may make an application to the Court on either or both of the following grounds—
(a) that a debtor's proposal approved by...
- Section 315 - Implementation and supervision of voluntary arrangement
(1) The supervisor is responsible for implementing and supervising a voluntary arrangement that has taken effect under section 312 or 319 and has such powers as are necessary to enable that...
- Section 316 - Expedited voluntary arrangement procedure: availability
(1) This section applies if a debtor intends to make a proposal to the debtor's creditors for a voluntary arrangement and—
(a) the debtor is an undischarged bankrupt;
(b) the Official Receiver is...
- Section 317 - Duty of Official Receiver to report result to the Court
As soon reasonably practicable after the arrangements under section 316 have been implemented, the Official Receiver shall report to the Court whether the proposed voluntary arrangement has been...
- Section 318 - Approval of expedited voluntary arrangement
(1) If the Official Receiver reports to the Court that the debtor's proposal has been approved, the proposal takes effect as a voluntary arrangement.
(2) On taking effect as a voluntary arrangement,...
- Section 319 - Power of Official Receiver to make application for annulment of bankruptcy order where debtor is an undischarged bankrupt
(1) In addition to making the arrangements under section 316(3), the Official Receiver may, if the debtor is an undischarged bankrupt, make an application to the Court to make an order under...
- Section 320 - Revocation of expedited voluntary arrangement
(1) The Court may make an order revoking a voluntary arrangement that has effect because of section
318(1) on the ground—
(a) that it unfairly affects the interests of a creditor of the debtor;...
- Section 321 - Offence for debtor to make false representation for purpose of obtaining creditors' approval
(1) A debtor commits an offence, if for the purpose of obtaining approval to a proposal for a voluntary arrangement, the debtor—
(a) makes a representation knowing it to be false or misleading; or...
- Section 322 - Prosecution of delinquent debtors
(1) This section applies to a voluntary arrangement that has taken effect in accordance with section 312(1) or 319(1).
(2) As soon as practicable after forming a reasonable suspicion that a debtor...
- Section 323 - What is a summary instalment order?
A summary instalment order is an order made by the Official Receiver directing the debtor to pay the debtor's debts—
(a) in instalments or in some other way; and
(b) in full or to the extent that...
- Section 324 - Who can apply for summary instalment order
The Official Receiver may make a summary instalment order on the application of—
(a) a debtor; or
(b) a creditor with the debtor's consent.
- Section 325 - Requirements for applications made by debtors
(1) The Official Receiver may refuse an application for a summary instalment order if the application does not comply with subsection (2).
(2) An application does not comply with this subsection...
- Section 326 - Official Receiver may make summary instalment order
(1) The Official Receiver may make a summary instalment order if satisfied that—
(a) the debtor's total unsecured debts that would be provable in the debtor's bankruptcy do not exceed the amount...
- Section 327 - Power of Official Receiver to make additional orders
In addition to an order for the payment of the debts in instalments, the Official Receiver may make all or any of the following orders—
(a) an order regarding the debtor's future earnings or...
- Section 328 - Appointment of supervisors
(1) Except as provided by subsection (2), a summary instalment order is ineffective if it does not provide for the appointment of a suitable and willing person to supervise compliance by the debtor...
- Section 329 - Role of supervisors
(1) The supervisor is responsible for supervising the debtor's compliance with the terms of the summary instalment order and any other orders made under section 327.
(2) The supervisor may charge the...
- Section 330 - Power of Official Receiver to require supervisor or past supervisor to provide documents
(1) The Official Receiver may, by notice, require a supervisor or a past supervisor to provide the Official Receiver, within not less than seven days from the date of the notice, with any specified...
- Section 331 - Termination of supervisor's appointment for failure to supervise adequately
If of the opinion that the supervisor has failed to supervise the debtor's compliance adequately, the
Official Receiver shall terminate the supervisor's appointment and appoint a replacement...
- Section 332 - Period for payment of instalments
The payment of instalments under a summary instalment order can be spread over a period not exceeding
—
(a) three years; or
(b) if justified by special circumstances acceptable to the...
- Section 333 - Variation or discharge of summary instalment orders
(1) The debtor, any creditor or the supervisor may at any time apply in writing to the Official Receiver to vary or discharge a summary instalment order.
(2) After considering an application made...
- Section 334 - Effect of summary instalment orders
(1) The debtor shall pay all instalments payable under a summary instalment in the manner prescribed by the insolvency regulations.
(2) The Official Receiver shall cancel a summary instalments order...
- Section 335 - Restrictions on bringing proceedings against debtors while summary instalment order has effect
(1) In this section, "proceedings", in relation to a debtor in respect of whom a summary instalment order has been made, means proceedings brought against the person or property of the debtor in...
- Section 336 - Supervisor to give notice of summary instalment order to creditors
(1) The supervisor shall send a notice of the summary instalment order to every creditor— (a) who is known to the supervisor;
(b) whose name is shown on the debtor's application for the order; or...
- Section 337 - Public register of debtors subject to current summary instalment order
(1) The Official Receiver shall establish and maintain a public register of persons who are subject to current summary instalment orders.
(2) The Official Receiver shall maintain the register in...
- Section 338 - When summary instalment order ceases to be current
A summary instalment order is not current if it has been discharged or all the instalments required to be paid under the order have been paid in accordance with the order.
- Section 339 - Claims of creditors when summary instalment has effect
(1) A creditor who has proved the creditor's debt to the satisfaction of the supervisor is entitled to be included as a creditor in the administration of the debtor's estate under the summary...
- Section 340 - Payment of debtor's earnings to supervisor
(1) This section applies if the supervisor, under a power conferred by a summary instalment order made by the Official Receiver, directs the debtor's employer to pay the debtor's earnings, or part of...
- Section 341 - Consequences of default by debtor to pay amount due under summary instalment order
(1) A debtor who fails to pay an amount due under a summary instalment order is presumed, unless the contrary is proved—
(a) to have been able to pay the amount from the date of the order; and (b) to...
- Section 342 - Offence for debtor to obtain credit while summary instalment order has effect
(1) A debtor in respect of whom a summary instalment order is in effect commits an offence if, before all creditors have been paid the amounts to which they are entitled under the order, the...
- Section 343 - Division 3: introduction
This Division prescribes a procedure for dealing with a debtor who has no realisable assets.
- Section 344 - Application for entry to no-asset procedure
(1) A debtor who meets the criteria set out in section 345 may apply to the Official Receiver for entry to the no-asset procedure.
(2) A debtor can apply for entry to the no-asset procedure by...
- Section 345 - Criteria for entry to no-asset procedure
(1) The Official Receiver shall admit a debtor to the no-asset procedure if satisfied on reasonable grounds that—
(a) the debtor has no realisable assets;
(b) the debtor has not previously been...
- Section 346 - Debtor disqualified from entry to no-asset procedure in certain cases
The Official Receiver shall not admit a debtor to the no-asset procedure if satisfied, on reasonable grounds, that—
(a) the debtor has concealed assets with the intention of defrauding the debtor's...
- Section 347 - Official Receiver to notify creditors
As soon as practicable after receiving an application from a debtor for entry to the no-asset procedure, the Official Receiver shall send a summary of the debtor's assets and liabilities to each known...
- Section 348 - Restrictions on debtor obtaining credit after application made
(1) A debtor who has applied for entry to the no-asset procedure shall not obtain credit (including credit under a credit purchase transaction), either alone or jointly with another person, of more...
- Section 349 - When debtor admitted to no-asset procedure
(1) A debtor is admitted to the no-asset procedure when the Official Receiver sends the debtor a notice in the form prescribed by the insolvency regulations for the purposes of this section.
(2) As...
- Section 350 - Public register of persons admitted to no-asset procedure
(1) The Official Receiver shall establish and maintain a public register of persons admitted to the noasset procedure and persons discharged from that procedure under section 359.
(2) The Official...
- Section 351 - Creditors may not enforce debts of debtor admitted to no-asset procedure
(1) A creditor of a debtor may not, after the debtor has been admitted to the no-asset procedure, begin or continue any step to recover or enforce a debt—
(a) that the debtor owes to the creditor at...
- Section 352 - Debtor's duties after entry to no-asset procedure
(1) On being required by the Official Receiver to do so, the debtor shall provide the Official Receiver with such assistance, documents and information as are reasonably necessary in order to apply...
- Section 353 - Offence for person admitted to no-asset procedure to obtain credit
(1) A person who, while admitted to the no-asset procedure—
(a) alone or jointly with another person, obtains credit of one hundred thousand shillings or more;
(b) incurs liability to a credit...
- Section 354 - How debtor's participation in the no-asset procedure is terminated
A debtor's participation in the no-asset procedure terminates when—
(a) the Official Receiver terminates the debtor's participation under section 355;
(b) the debtor is discharged under section...