Under the laws of Kenya, bankruptcy is the declaration made against a person by a court after it is found that the individual is unable to meet his or her financial liabilities.
Kenyan Bankruptcy laws are governed by the Bankruptcy Act Cap 53.
Confusion arises between insolvency and bankruptcy.
The term bankruptcy applies to individuals while liquidation relates to insolvency proceedings involving a body corporate.
Bankruptcy has the effect of transferring to the trustee all rights that the bankrupt had over his property.
If a person is unable to pay his or her debts whether in the exercise of a court decree or in normal business, a bankruptcy suit can be filed against him.
A bankruptcy filing can either…
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