Section 326 of Insolvency Act CAP 53: 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 prescribed by the insolvency regulations for the purpose of this section; and
(b) the debtor is unable immediately to pay those debts.
(2) The Official Receiver may not make such an order without having given the debtor and the creditors an opportunity to make representations with respect to the matter.
(3) A summary instalment order is not invalid merely because the total amount of the debts proved exceeds the amount specified in subsection (1)(a), but if it does, the supervisor appointed under section 328 shall refer the matter to the Official Receiver, in which case the Official Receiver shall cancel the order.
Enhance Your Research with Bookmarks and Annotations
Here's how you can use these features:
- To bookmark this page, click the "Bookmark this Page" button below the document title.
- To add an annotation, highlight text in the document and select "Add Annotation" from the toolbar that appears.
- These features are great for organizing your research and keeping track of key information.
- You can view and manage your bookmarks and annotations on your Bookmarks and Annotations page.
- 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...
- Section 355 - When Official Receiver may terminate no-asset procedure
(1) The Official Receiver shall terminate a debtor's participation in the no-asset procedure if satisfied—
(a) that the debtor was wrongly admitted to the no-asset procedure (for example, because the...
- Section 356 - Official Receiver may apply for preservation order on ground of debtor's misconduct
(1) If the Official Receiver terminates a debtor's participation in the no-asset procedure on the ground that the debtor has concealed assets or misled the Official Receiver, the Court may, on the...
- Section 357 - Effect of termination of debtor's participation in no-asset procedure
(1) On termination of the debtor's participation in the no-asset procedure—
(a) the debtor's debts that became unenforceable on the debtor's entry to the no-asset procedure become again enforceable;...
- Section 358 - Creditor may apply to Official Receiver for termination of debtor's participation in noasset procedure
A creditor may apply to the Official Receiver for termination of the debtor's participation in the no-asset procedure on the ground—
(a) that the debtor did not meet the criteria for admission to the...
- Section 359 - Discharge of debtor's participation in no-asset procedure
(1) A debtor who is participating in the no-asset procedure is automatically discharged from that procedure at the end of twelve months after the date when the debtor was admitted to...
- Section 360 - Effect of discharge of debtor's participation in no-asset procedure
(1) On discharge under section 359—
(a) the debtor's debts that became unenforceable on the debtor's entry to the no-asset procedure are cancelled; and
(b) the debtor is no longer liable to pay any...
- Section 361 - Discharge does not release debtor's business partners and others
A discharge under section 359 does not release a person who, at the date of discharge, was— (a) a business partner of the discharged debtor;
(b) a co-trustee with the discharged debtor;
(c) jointly...
- Section 362 - Interpretation: Part V
(1) In this Part—
"administrator" has the same meaning as in the Law of Succession Act (Cap. 160);
"beneficiary", in relation to a deceased debtor's estate, means a person who is beneficially...
- Section 363 - Court may order that estate be administered under this Part
(1) The Court may order that the estate of a deceased debtor be administered under this Part on the application—
(a) under section 364 of the executor or administrator or a person who is applying to...
- Section 364 - Application by executor or administrator, etc
(1) The executor or administrator, or a person who is applying to the Court for a grant of probate or letters of administration, may apply to the Court for an order that the estate be administered...
- Section 365 - Application by creditor or beneficiary for order under this Part
(1) An application to the Court for an order under this Part may also be made—
(a) by a creditor of the deceased's estate, if the creditor's debt has reached the threshold for a creditor's...
- Section 366 - Notice of application by creditor or beneficiary
If an application has been lodged by a creditor or beneficiary under section 365, the applicant shall give notice of the application—
(a) to the executor or administrator; or
(b) if there is no...
- Section 367 - Court may order administration by Official Receiver or the Public Trustee instead of executor or administrator
(1) This section applies if—
(a) an application has been made to the Court for an order to administer an estate under this Part; and
(b) the Court believes that the estate is likely to be better...
- Section 368 - Certificate lodged by the Public Trustee has effect as application and order
(1) If the Public Trustee is the executor or administrator of, or would be entitled to obtain a grant of administration for, an apparently insolvent estate, the Public Trustee may lodge a certificate...
- Section 369 - Estate vests in trustee
(1) The whole of the estate at the date when the application for the order under this Part was lodged vests in the person appointed by the Court to administer it as trustee.
(2) In its order that the...
- Section 370 - Trustee to realise, administer and distribute estate
The trustee shall, as soon as practicable after the estate vests in the trustee, realise, administer, and distribute the assets in accordance with the law and practice of bankruptcy, subject to any...
- Section 371 - Entitlement of surviving spouse to household furniture and effects
(1) This section applies if the estate that vests in the trustee includes any of the deceased's necessary household furniture and effects that would have passed to the deceased's surviving spouse if...
- Section 372 - Trustee may make allowance to surviving spouse
(1) The trustee may make an allowance out of the estate to the surviving spouse or to any of the relatives or dependants of the deceased or the surviving spouse for the support of any of...
- Section 373 - Application of Division 3
This Division applies if the Court has made an order that the estate of a deceased person be administered under this Part.
- Section 374 - Trustee's functions and powers in respect of insolvent deceased's estate
The trustee has, in relation to the estate, the same functions and powers as a bankruptcy trustee has in relation to the property of a bankrupt.
- Section 375 - Distribution of insolvent deceased's estate
(1) The trustee shall distribute the estate in the following order—
(a) firstly, payment of all proper costs, charges, debts and expenses of the due administration of the estate, whether incurred...
- Section 376 - How any surplus is to be paid
(1) In this section, "surplus" means the surplus of assets that remains with the trustee after the trustee has paid in full—
(a) the debts due by the deceased debtor;
(b) the costs of the...