Annulment of order-adjudication of debtor, Financial Accounting

Annulment of order

The order may be annulled if

  • In the opinion of the court the debtor ought not to have been adjudicated bankrupt;
  • All the debts have been paid in full; or
  • A composition or scheme is accepted by the creditors and approved by the court.

 

As to (b) voluntary release of a debt is not equivalent to payment; a disputed debt is considered as paid in full if the debtor enters into a bond to pay it if the dispute is settled in favour of the creditor and a debt due to an untraceable or unidentifiable creditor by payment of the debt into court. The court may refuse an annulment, although the debts have been paid in full, or the O.R. reports that the bankrupt has committed bankruptcy offenses.

An annulment must be advertised in the Kenya Gazette, and releases the debtor from the disabilities of bankruptcy, but does not invalidate payments or other acts properly made by the Official Receiver or the trustee. The property of the debtor vests in such person as the court directs, or otherwise reverts to the debtor.

Posted Date: 12/12/2012 6:35:38 AM | Location : United States







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