Section 340 of Insolvency Act CAP 53: 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 them, to the supervisor.
(2) The amounts that the employer shall pay to the supervisor are recoverable as a debt from the employer, and the supervisor's receipt is a complete discharge to the employer for the debt.
(3) Payment by the employer in contravention of the supervisor's direction to pay the supervisor discharges the liability of the employer to the supervisor for the amount of the payment only if it is made—
(a) with the consent of the supervisor or the Official Receiver; or
(b) to a person who is not the debtor and who has a better legal claim to it than the debtor.
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- 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...
- Section 377 - Creditor's notice to executor or administrator
If an order that a deceased's estate be administered under this Part is notified to the deceased's executor or administrator, the executor or administrator may obtain a proper discharge for any...
- Section 378 - Power of trustee to act in relation to deceased's irregular transactions
(1) A trustee may take a step that a bankruptcy trustee could have taken under Division 19 of Part III (for example, by cancelling an irregular transaction) as if the deceased had been bankrupt at the...
- Section 379 - Trustee may cancel execution against insolvent deceased debtor's estate
The trustee may cancel an execution against the deceased debtor's estate unless it was completed more than three months before the date of the order that the estate be administered under this Part.
- Section 380 - Certain acts of executor or administrator valid if done in good faith
A payment made, or an act done or omitted to be done, in good faith by an executor or administrator in respect of a deceased's estate before the executor or administrator had notice of an intention to...
- Section 381 - Scheme of Part VI
(1) This Part applies to the liquidation of a company registered under the Companies Act (Cap. 486).
(2) A liquidation may be either—
(a) voluntary in accordance with Divisions 2 to 5; or (b) by the...
- Section 382 - Distinction between "members" and "creditors" voluntary liquidation
In this Part—
(a) a liquidation in the case of which a directors' statutory declaration under section 398 has been made is a "members' voluntary liquidation"; and
(b) a liquidation in the case of...
- Section 383 - Interpretation: Part VI
(1) In this Part—
"contributories"—
(a) means all persons liable to contribute to the assets of a company if it is liquidated; and
(b) for the purposes of all proceedings for determining, and all...
- Section 384 - The circumstances in which a company is unable to pay its debts
(1) For the purposes of this Part, a company is unable to pay its debts—
(a) if a creditor (by assignment or otherwise) to whom the company is indebted for hundred thousand shillings or more has...
- Section 385 - Liability as contributories of present and former members
(1) When a company is being liquidated, every present and former member is liable to contribute to its assets to any amount sufficient for payment of its debts and liabilities, and the expenses of the...
- Section 386 - Liability of past directors and shareholders
(1) In this section, "relevant payment" means a payment made out of capital in respect of the redemption or purchase by a company of any of its own shares.
(2) This section applies if a company is in...
- Section 387 - Position of limited companies that were formerly unlimited
(1) This section applies to a company that is in liquidation if it was previously registered as unlimited but has since become re-registered as a limited company.
(2) Despite section 385(2)(a), a...
- Section 388 - Position of unlimited companies that were formerly limited
(1) This section applies to a company in liquidation that has previously been registered as limited but has since become re-registered as unlimited.
(2) A person who, at the time when the application...
- Section 389 - Nature of contributory's liability
The liability of a contributory creates an ordinary contract debt due from the contributory at the time when the contributor's liability began, but payable at the times when calls are made to enforce...
- Section 390 - Death of contributories not to affect their liability
(1) If a contributory dies either before or after being placed on the list of contributories, the contributory's personal representatives are, in administering the contributory's estate, liable to...