A major amendment to Cap. 5 (Bankruptcy Law) is that a bankrupt individual, against whom a receivership order has been issued, shall be restored following three (3) years as of the date of the court receivership order on the condition that all the debtor’s assets are sold and the proceeds distributed to the creditors.
Bankrupt persons that have cooperated with the Official Receiver and have shown good contact, shall be automatically discharged of their outstanding debt and be restored following three years from the date of the Receiving Order, provided they submitted their Statement of Affairs.
In this way a second chance is given to the discharged bankrupt to begin fresh business activities without the burden of old debts.
Where the bankrupt person has not fully disclosed assets to the Official Receiver or fraudulently alienates assets prior to his bankruptcy, criminal sanctions are provided under the law.
all Licensed Insolvency Practitioners.