- Section 241 of Insolvency Act CAP 53: Creditor required to deduct trade discounts
A creditor shall deduct from the creditor's claim any trade discount that the creditor would have given a debtor if the debtor had not become bankrupt.
- Section 242 of Insolvency Act CAP 53: Secured creditor can prove as unsecured creditor if security is void or partly void
If a creditor's security over assets of the bankrupt is wholly or partly void under a provision of this or any other Act, the creditor may prove as an unsecured creditor— (a) if the security is wholly void, for the whole of the debt; or
(b) if the security is partly void, to the extent that the...
- Section 243 of Insolvency Act CAP 53: Judgment creditor may prove for costs
A person who obtained an order for costs against the bankrupt before the commencement of the bankruptcy may prove for the amount of those costs even if that amount is not fixed until after that commencement.
- Section 244 of Insolvency Act CAP 53: Company may prove for unpaid calls
(1) If a bankrupt is, at the commencement of the bankruptcy, a shareholder of a company (not being a company that is in liquidation), the company may prove for—
(a) the amount of unpaid calls on the bankrupt made before that commencement in respect of the bankrupt's shares; and
(b) the value of...
- Section 245 of Insolvency Act CAP 53: When guarantor for bankrupt may prove claim
If, in relation to a bankruptcy—
(a) a person is, at the commencement of the bankruptcy, a guarantor of, or is otherwise liable for a debt of, the bankrupt; and
(b) the person discharges the debt or liability (before or after that commencement), the person is entitled to the benefit to subsection...
- Section 246 of Insolvency Act CAP 53: Interpretation: Division 21
In this Division, "preferential claim" means a claim in respect of a debt listed in paragraphs 2, 3 or 4 of the Second Schedule.
- Section 247 of Insolvency Act CAP 53: Preferential debts: priority of debts
(1) For the purpose of this Act, a bankrupt's preferential debts are those specified in paragraphs 2 to 4 of the Second Schedule and are payable as provided by that Schedule in priority to the bankrupt's other debts.
(2) Debts of the bankrupt that are neither preferential debts nor debts to which...
- Section 248 of Insolvency Act CAP 53: Priority ranking of debts owed to bankrupt's spouse
(1) This section applies to bankruptcy debts owed in respect of credit provided by a person who was the bankrupt's spouse at the commencement of the bankruptcy and so applies even if the person was not the bankrupt's spouse at the time the credit was provided.
(2) Those debts—
(a) rank in priority...
- Section 249 of Insolvency Act CAP 53: Person who makes payment on account of preferential creditor to be subrogated to the rights of that creditor
If a payment has been made to a person on account of a preferential creditor out of money advanced by another person for that purpose, the other person has, in the bankruptcy, the same right of priority in respect of the money so advanced as the preferential creditor would have if the payment had...
- Section 250 of Insolvency Act CAP 53: Priority given to landlord or other person who distrains on goods and effects of bankrupt
(1) If a landlord or other person has distrained on goods or effects of the bankrupt during the thirty day period before the bankruptcy commenced, the preferential claims are a first charge on the goods or effects so distrained, or the proceeds from their sale.
(2) However, if any money is paid to...
- Section 251 of Insolvency Act CAP 53: Creditors to have priority over creditors of joint bankrupt
If a bankrupt is a partner of a firm, any creditor to whom the bankrupt is indebted jointly with the other partners of the firm is not entitled to receive money obtained from the realisation of the bankrupt's separate property until the claims of all of the other creditors have been paid in full.
- Section 252 of Insolvency Act CAP 53: Final distribution of bankrupt's estate
(1) On realising the bankrupt's estate or so much of it as can be realised without needlessly protracting the bankruptcy trusteeship, the bankruptcy trustee shall give notice either—
(a) of an intention to declare a final dividend; or
(b) that no dividend, or further dividend, will be...
- Section 253 of Insolvency Act CAP 53: Final meeting of creditors
(1) Subject to this section, if—
(a) it appears to the bankruptcy trustee that the administration of the bankrupt's estate in accordance with this Division is for practical purposes complete; and
(b) the bankruptcy trustee is not the Official Receiver, the bankruptcy trustee shall summon a final...
- Section 254 of Insolvency Act CAP 53: Automatic discharge three years after bankrupt lodges statement of financial position
(1) A bankrupt is automatically discharged from bankruptcy three years after the bankrupt lodged a statement of the bankrupt's financial position in accordance with section 50, but may apply to be discharged earlier.
(2) However, a bankrupt is not automatically discharged if—
(a) the bankruptcy...
- Section 255 of Insolvency Act CAP 53: Effect of automatic discharge
The automatic discharge of the bankrupt has the same effect as if the Court made an order for the bankrupt's discharge.
- Section 256 of Insolvency Act CAP 53: Right of creditor to object to automatic discharge
(1) The bankruptcy trustee, the Official Receiver (if not the bankruptcy trustee) or, with the approval of the Court, a creditor may object to a bankrupt's automatic discharge.
(2) An objection has no effect unless it is made in the manner and form prescribed by the insolvency regulations.
- Section 257 of Insolvency Act CAP 53: Objection can be withdrawn
(1) An objection to the automatic discharge of the bankrupt may be withdrawn in the manner prescribed by the insolvency regulations.
(2) A bankrupt is automatically discharged on the withdrawal of the objection if—
(a) the three-year period referred to in section 254(1) has elapsed;
(b) there is...
- Section 258 of Insolvency Act CAP 53: Bankrupt may apply for early discharge
(1) A bankrupt may at any time apply to the Court for an order of discharge from bankruptcy.
(2) However, if the Court has previously refused an application by the bankrupt for a discharge, and has specified the earliest date when the bankrupt may again apply, the bankrupt may not make another...
- Section 259 of Insolvency Act CAP 53: When bankrupt is to be publicly examined before the Court concerning discharge
(1) The bankruptcy trustee shall summon the bankrupt to be publicly examined before the Court concerning the bankrupt's discharge if—
(a) the bankruptcy trustee or a creditor has objected to the bankrupt's automatic discharge and the objection has not been withdrawn;
(b) the bankrupt is due for...
- Section 260 of Insolvency Act CAP 53: Bankruptcy trustee to lodge report with the Court in specified circumstances
(1) The bankruptcy trustee shall prepare a report and lodge it with the Court when—
(a) the bankrupt has applied under section 258 for a discharge; or
(b) the bankruptcy trustee has summoned the bankrupt to be examined in accordance with section 259.
(2) The bankruptcy trustee shall include in...
- Section 261 of Insolvency Act CAP 53: When creditor required to give notice of opposition to discharge
(1) A creditor shall give to the bankruptcy trustee and the bankrupt a notice that complies with subsection (2) if the creditor intends to oppose the bankrupt's discharge on a ground that is not mentioned in the bankruptcy trustee's report.
(2) A notice complies with this subsection if...
- Section 262 of Insolvency Act CAP 53: Power of the Court to grant or refuse discharge
(1) On hearing an application made under section 258, or the holding of a public examination of the bankrupt under section 259, the Court may— (a) immediately discharge the bankrupt;
(b) discharge the bankrupt on conditions;
(c) discharge the bankrupt but suspend the order for a specified period;...
- Section 263 of Insolvency Act CAP 53: Court may restrict bankrupt from engaging in business after discharge
(1) On making an order of discharge or at any earlier time, the Court may prohibit the bankrupt from doing after discharge all or any of the following without the Court's approval—
(a) entering into, carrying on, or taking part in the management or control of any business or class of...
- Section 264 of Insolvency Act CAP 53: Court may quash order discharging bankrupt
(1) The bankruptcy trustee or a creditor of the bankrupt may make an application to the Court for an order under subsection (2).
(2) On the hearing of an application made under subsection (1), the Court may make an order quashing the discharge of a bankrupt at any time before—
(a) in the case of...
- Section 265 of Insolvency Act CAP 53: Effect of quashing order discharging bankrupt from bankruptcy
(1) The quashing of a discharge does not affect the rights or remedies that a person other than the bankrupt would have had if the discharge had not been quashed.
(2) It property acquired by the bankrupt after discharge is owned by the bankrupt at the date when the order quashing the discharge is...
- Section 266 of Insolvency Act CAP 53: Bankrupt may apply for absolute discharge on ground that conditions of discharge are too onerous
(1) A bankrupt may apply to the Court for an absolute discharge even though the bankrupt is not able to comply with any or all of the conditions of the bankrupt's discharge.
(2) The Court may discharge the bankrupt absolutely if satisfied that the bankrupt's inability to comply with the conditions...
- Section 267 of Insolvency Act CAP 53: Debts from which bankrupt is released on discharge
(1) On being discharged, a bankrupt is released from all debts provable in the bankruptcy except those listed in subsection (2).
(2) The debts from which the bankrupt is not released are the following—
(a) any debt or liability incurred by fraud or fraudulent breach of trust to which the bankrupt...
- Section 268 of Insolvency Act CAP 53: Discharge to be conclusive evidence of bankruptcy and the validity of bankruptcy proceedings
A discharge of a bankrupt from bankruptcy is conclusive evidence of the bankruptcy and of the validity of the proceedings in course of the bankruptcy.
- Section 269 of Insolvency Act CAP 53: Discharge not to release partners of bankrupt and others
The discharge of a bankrupt does not release a person who, at the commencement of the bankruptcy, was
—
(a) a business partner of the bankrupt;
(b) a co-trustee with the bankrupt;
(c) jointly bound or had made any contract with the bankrupt; or (d) a guarantor or in the nature of a guarantor of...
- Section 270 of Insolvency Act CAP 53: Discharged bankrupt to assist bankruptcy trustee
(1) A person who is discharged from bankruptcy shall assist the bankruptcy trustee, as required by the Court or the bankruptcy trustee, in the realisation and distribution of the property of the person that is vested in that trustee.
(2) lf a person who has been discharged from bankruptcy fails to...