COLLEGE OF HUMANITIES AND SOCIAL SCIENCES
SCHOOL OF LAW
LL.B. III MODULE 2: DAY
TERM PAPER: GPR 317:BANKRUPTCY AND COMMERCIAL SECURITIES
QUESTION: Critically examine the salient features, reforms and innovations relating to individual insolvency as enshrined in the Kenyan Insolvency Bill 2012 as contrasted with the Bankruptcy Act, cap 53, Laws of Kenya.
The Kenyan Insolvency Bill 2012 is an act of parliament to: amend and consolidate the law relating to the insolvency of natural persons and incorporated and unincorporated bodies; to provide alternative procedures to bankruptcy that will enable the affairs of insolvent natural persons to be managed for …show more content…
NOTE: The Bankruptcy Act does not exclusively detail circumstances which a person cannot be a trustee or official receiver. The Insolvency Bill clearly states a trustee is either the official receiver (a civil servant and officer of the court) or a licensed insolvency practitioner. Insolvency Practitioner is a new term under the bill.
Trustee must equally distribute assets to creditors with regard to their debts owed; maximize the assets’ liabilities. Official receiver or trustee has power to extend bankruptcy period under certain circumstances and this is achieved by seeking an order from the courts.
5. Individual Voluntary Arrangement (includes asset realization and payment scheme and schedule) is an agreement between an insolvent individual and his creditors which either compromises or provides a framework for the settlement of his debts. A composition or scheme of arrangement may be proposed by the debtor to his creditors and also has the option of seeking