Insolvency notes kenya

8/17/2019 Insolvency notes kenya

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PROCESSING OF CREDITOR’SCLAIMS AGAINST

BANKRUPTCY'S ESTATEDivision 20 Section 215 -245

Insolvency Bill 2015


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WHAT DOES THIS ENTAIL?

• Firstly !r"#it$rs !li% is

#$!&%"t t(t !r"#it$r s&)%its t$t(" )*r&+t!y tr&st"" ,$r t("+&r+$s" $, +r$-i. #")t /

• A #")t 0 t("r",$r" is +r$-"# 1(" it isll$1"# )y t(" )*r&+t!y tr&st""/


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W(t #")ts r" +r$-)l"?

• W(t is #")t ?

• T($s" t(t r" i!&rr"# #&ri. t("!$%%"!"%"t $, t(" )*r&+t!y/

• A,t"r t(" !$%%"!"%"t )&t )",$r"t(" #is!(r."0 )"!&s" $, $)li.ti$ i!&rr"# )y t(" )*r&+t)",$r" t(t !$%%"!"%"t/


4/24

D")ts t(t !$t )"+r$-"#/

• A 2" 0 +"lty $r $t("r %#" )y !$&rt $r#"ri. t(" +y%"t $, %$"yt(t (s )"" %#" ,$ll$1i.

!$-i!ti$/ S&!( #")ts r" $t+r$-)l"

• A# t($s" #")ts i!&rr"# #&ri. t("

!$%%"!"%"t $, t(" )*r&+t #r" $t #is!(r."# 1(" t(")*r&+t is #is!(r."# ,r$%

)*r&+t!y/ 3 "4%+l"s 5


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W(t is t(" +r$!"#&r" ,$r +r$-i.

s&!( #")ts ?

• 6/ !r"#it$r t$ s&)%it !li% ,$r%• A !r"#it$r i!li. !r"#it$r 1($ (s

+r","r"til !li% 1($ s(ll s&)%it s(ll !li% t$

t(" )*r&+t!y tr&st""/ T(is is #$" )",$r" !"rti #"#li"

• T(is #"#li" %y )"0

• 78 t(" ti%" s+"!i2"# )y t(" )*r&+t!y tr&st""

i $ti!" .i-" t$ t(" !r"#it$r• 7)8 t(" ti%" s+"!i2"# i #-"rtis"%"t

+&)lis("# )y t(" )*r&+t!y tr&st"" i "1s++"r


6/24

W(t t(" is r"9&ir"# )y t("

!r"#it$r

T(" !r"#it$r is r"9&ir"# t$ #("r" t$y +r"s!ri)"# ,$r%liti"s/

H" is ls$ &l"ss t(" C$&rt %*" $r#"r t$ s&!(0 )"r ll !$sts i!&rr"#s r"s&lt

T(" !r"#it$r %y ls$ %"# $r1it(#r1 t(" !li% 0)&t %"#"#!li% (s t$ !$%+ly 1it( ,$r%liti"s+r"s!ri)"# ,$r t(" $ri.il !li%/


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E4%iti$ $, t(" !li%

• :/ B*r&+t!y tr&st"" is r"9&ir"# t$"4%i" !r"#it$r’s !li%/ Ul"ss it is!$!l"# t(t $ #i-i#"# s($&l# )" +i#/

•A,t"r "4%iti$ t(" B/T s(ll "it("r 1($lly$r +rtilly ll$1 it0 $r 1($lly $r +rtillyr";"!t s&!( !li% /

• My ls$ r"9&ir" %$r" "-i#"!" i s&++$rt

$, t(" !li% $r it"% /

• i, t(" !li% is r";"!t"# t(" B/T s(ll $ti,y$ t(" r";"!ti$ # .i-" r"s$s t("r"t$


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P$1"rs $, t(" B/T

• B/T %y s* ,$r %$r" "-i#"!"/ H" %y s&%%$,$r "4%iti$ # "4%i" $ $t( $r $t("r1is" 0

• 6/ +"rs$ 1($ (s s&)%itt"# !r"#it$r’s !li%

• :/ +"rs$ 1($ (s %#" #"!"l"rti$ $rstt"%"t s +rt $, !r"#it$r’s !li%

•


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W(t is t(" )*r&+t $r #")t$r

ll$1"# t$ #$?

• T(" B*r&+t 0 ! .i-" t(" B/T $ti!" t$ r";"!t $r ll$1 !r"#it$rs!li%/ A !r"#it$r %y ls$ .i-" $ti!"

t$ t(" B/T t$ r";"!t !"rti !li%%#"/

• I, t(" B/T ,ils t$ tt"#"# t$ s&!(

!$&t"r=!li% )y ll$1i. ,$r t("r";"!ti$ $r $t("r1is" 1it(i ,$&rt""#ys0 t(" !r"#it$r $r )*r&+t %y

++ly t$ !$&rt ,$r s&!( $r#"r/


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P$1"rs $, t(" C$&rt

• T(" $>!il r"!"i-"r0 t(" )*r&+t $r!r"#it$r %y %*" ++li!ti$ t$ t("!$&rt ,$r $r#"r $ t(" .r$&#s t(t B/T

i%+r$+"rly ll$1"# !r"#it$r’s !li%/• T(" C$&rt "4"r!is" its #is!r"ti$ )y0

• 78 !$&rt %y %*" $r#"r !!"lli. s&!(!li%/

• 7)8 r"#&!" t(" %$&t !li%"# i, it!$si#"rs t(t t(" !li% 1s i%+r$+"rlyll$1"# i +rt $r $t("r1is"


11/24

• T(" !$&rt %y ls$ 9&s( $r -ry)*r&+t!y tr&st""’s #"!isi$ r";"!ti.!r"#it$r’s !li%

• W("r"0 &+$ ++li!ti$ %#" )y !r"#it$r s r"s&lt $, r";"!t"# !li% t("C$&rt %y !$si#"r t(" B/T’s #"!isi$ 1s1($lly ;&sti2"# # t("r",$r !$2r% it/

• I, it !$si#"rs t(t t(" #"!isi$ 1s $ly+rtilly ;&sti2"# it 1ill 9&s( t(" r"st #s&sti t(" $t("r (l,


12/24

Prti"s t$ +r$!""#i.s r"lti. t$

!r"#it$r’s !li%s

• I, t(" ++li!t is $t t(" B/T $r

B*r&+t $r !r"#it$r s&!( i#i-i#&l

%y s"r-" !$+y $, t(" ++li!ti$

$ t(" )*r&+t!y tr&st"" s +rty

t$ t(" +r$!""#i.s/


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• T(" !$&rt %y %*" $r#"r s t$!$sts/

• O t(" ("ri. $, ++li!ti$%#" t$ it 0 it

• My istr&!t !r"#it$r t$ ++ly##iti$l !$sts t$ t(" !r"#it$r's

!li%

• Or #ir"!t t(t s+"!i2"# %$&t $,!$sts )" +i# t$ t(" )*r&+t’s

"stt"/


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S"!&r"# !r"#it$rs $+ti$s i r"lti$t$ +r$+"rty t(t is s&);"!t t$ !(r."

• W($ is s"!&r"# !r"#it$r?

• O+ti$ 6

T$ r"li" t(" +r$+"rty )y (-i. it s$l# 7 )&t

$ly i, t(" !r"#it$r is ll$1"# t$ #$ s$ &#"r

t(" t"r%s $, t(" !(r." 8

• O+ti$ :

T$ (-" t(" +r$+"rty -l&"# # +r$-" i t(")*r&+t!y s &s"!&r"# !r"#it$r ,$r t("

)l!" #&" 7i, y 8 ,t"r #"#&!ti. t("

%$&t $, t(" -l&ti$


15/24

• O+ti$ <

T(" 2l $+ti$ is t(t t(" !r"#it$r %y!($$s" t$ s&rr"#"r t(" !(r." t$ t(" B/T

,$r t(" .""rl )""2t $, t(" !r"#it$rs&+$ 1(i!( t(" !r"#it$r !9&ir"s t("stt&s $, &s"!&r"# !r"#it$r

T(" ,il&r" $ !($$si. s&!( $+ti$s1$&l# t(" li%it s&!( s"!&r"# !r"#it$r t$$+ti$ < # ("!" ,$rt( it 1ill ++ly/


16/24

P$1"r $, !$&rt t$ #is+$s" $, +r$+"rtyt(t is s&);"!t t$ !(r."

• T(" B/T %*"s $r#"r t$ t(" !$&rt t$ ")l"(i%@("r t$ #is+$s" $, +r$+"rty s i, it 1"r"$t s&);"!t t$ t(" s"!&rity 0 )&t i, it 1"r"

stis2"# t(t t(" #is+$sl $, t(" +r$+"rty1$&l# li*"ly t$ +r$-i#" )"tt"r $-"rll$&t!$%" ,$r t(" !r"#it$rs $, t(" )*r&+t/

• S$ i, t(" $r#"r r"lt"s t$ %$r" t( $"

s"!&rity t(" B/T s(ll ++ly t(" %$"y ,r$%t(" #is+$sl i t(" $r#"r $, t(" +ri$riti"s $,t(" s"!&riti"s t!*i.?


17/24

R"liti$ $, +r$+"rty t(t is

s&);"!t t$ s"!&rity

• A !r"#it$r 1($ r"li"s +r$+"rty t(t is s&);"!tt$ !(r." %y +r$-" s &s"!&r"#!r"#it$r ,$r y )l!" #&" ,t"r #"#&!ti$t(" "t %$&t r"li"#/

• H" )"!$%"s &s"!&r"# !r"#it$r/ T(is isli%it"# t$ 0 t(" ,$ll$1i. !$#iti$s

• 6/ (" s(ll !!$&t t$ t(" B/T ,$r y s&r+l&s

r"%ii. ,t"r t(" #")t (s )"" !l"r"# ls$t(" it"r"st +y)l" # y +r$+"r +y%"ts+y)l" t$ t(" ($l#"r $, y $t("r !(r." $-"rt(" +r$+"rty/


18/24

l&ti$ $, !(r." ("l# )y !r"#it$r# !li% ,$r )l!" #&"

• R"%"%)"r t(t t(" !r"#it$r ,t"r-l&ti$ $, t(" +r$+"rty t(t is !(r."#%y )"!$%" &s"!&r"# !r"#it$r/

• H$1"-"r0 )",$r" t(is t(" !r"#it$r (s t$%*" s&r" t(t t(" !li% is %#" i t("+r"s!ri)"# !li% ,$r%0 !$tis ,&ll+rti!&lrs $, t(" -l&ti$ # t(" #")t

0,&ll +rti!&lrs $, t(" !(r."0 i#"ti2"st(" #$!&%"t t(t s&)sttit" t(" #")t# t(" !(r."/


19/24

O"!"s ,$r s"!&r"# !r"#it$r t$

%*" ,ls" !li%

• M*" $r &t($ri"s s$%" *i# $,,lsity &#"r t(" !(r."# -l&ti$!li% ,$r%

• O%its y %t"ril ,!t/

• A s"!&r"# !r"#it$r 1($s" li)ility,lls 1it(i t(" stt"# +r%"t"r 1ill

)" li)l" $ 2" $, :M $ri%+ris$%"t ,$r t"r% $t"4!""#i. 2-" y"rs $r )$t(/


20/24

B/T’s +$1"rs 1(" s"!&r"# !r"#it$r-l&"s +r$+"rty s&);"!t t$ !(r." #

+r$-"s ,$r )l!"

• i, !r"#it$r 1($ ($l#s !(r." $-"r+r$+"rty $, )*r&+t!y -l&"s t("+r$+"rty # s""*s t$ +r$-" ,$r t(")l!" #&"0 t(" )*r&+t!y tr&st""s(ll0 !!"+t t(" -l&ti$ # t("

!r"#it$r’s !li%/• 78 r";"!t

• 7)8 !!"+t


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• S"!&r"# !r"#it$r 1($ s&rr"#"rs!(r." %y 1it( ++r$-l $, t("!$&rt 1it(#r1 !li% $r s&)%it "1

!li%

• T(is r","rs t$ t($s" !r"#it$rs 1($(-" !($s" O+ti$


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Insolvency notes kenya