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DISABILITIES OF A BANKRUPT


Upon adjudication the bankrupt becomes subject to the following disabilities:

1.            All property belonging to him including property acquired by him prior to his discharge vests in the trustee in Bankruptcy for distribution among his creditors;

2.            He must not either alone or jointly with any other person obtain credit to the extent of 100/= or upwards from any person without informing that person that he is an undischarged bankrupt;  Section 139 (a) BA;

3.            He must not engage in any trade or business under a name other than that under which he was adjudicated bankrupt without disclosing to all persons with whom he enters into any business transactions the name under which he was adjudicated  Section 139 (b) of the BA;

4.            Under Section 188 of the Companies Act he cannot act as a director of a company or directly or indirectly take part in the management of a company except by leave of the court by which he was adjudged bankrupt;

5.            He cannot act as a receiver or manager of the property of a company on behalf of the debenture holders except under appointment made by order of the court;

6.            Under Section 35 (1) (d) of the current Constitution a bankrupt is disqualified from being a member of parliament or a member of a local authority if elected he will have to relinquish his seat;

7.            He cannot act as an advocate under Section 32 of the Advocates Act Cap 16 of the Laws of Kenya.

 
 
 

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