Bankruptcy

The starting process of the bankruptcy proceedings is the filing of bankruptcy notice and then a petition against a debtor.

• The petition document is prepared by a creditor or their solicitors against a debtor.
• The creditor will pay $100.00 plus Vat for petition fees to the Revenue Collector at the Office of the Official Receiver (“OR Office”).
• The Revenue collector will issue a receipt for the payment.
• The creditor will file all petition documents at the Magistrates Court.

Once the Magistrates’ Court makes a Receiving Order and appoints the Official Receiver as the receiver of a debtor’s estate –

• The creditor or their solicitors will need to serve the Official Receiver with the original order and proof of debt claim;
• Official Receiver directs the creditor or their solicitors in writing via a letter to advertise the receiving order and also serve the receiving order on the debtor;
• The served copy of the receiving order is to be forwarded to the OR Office and an affidavit of service has to be filed in Court by the Creditor or their solicitors;
• In the same letter, creditor or their solicitors is advised to fill a form to provide all pertinent details of the debtor in particular the proper physical address and contact details of the debtor;

OR Office then writes to the debtor to provide the statement of affairs if a proper address is provided.

Official Receiver directs the creditor or their solicitors in writing via a letter to advertise the receiving order in the daily Newspaper and Gazette and also serve the receiving order on the debtor;

The Official Receiver Office will to carry out all relevant searches on the Debtor(s) including all monies held by him or her, any bank accounts, properties under his name, vehicles under his name or any other necessary search.

• Letter to Debtor is a notice for the debtor to file the Statement of Affairs.
• A Receiving Order and the Statement of Affairs form are served with the Letter to the Debtor.

After advertisement and gazette notice, the Official Receiver Office will receive Proof of Debt claims from other supporting creditors against the debtor.

The creditors should file their claims on –

• A proof of debt claim form that is available at the Official Receiver’s Office.
• Attached to the proof of debt claim should be all relevant documents to substantiate their claims such as invoices, small claims judgment and other relevant documentation that supports their claims.
• The Official Receiver Office to verify all proof of debt.
• Filling fees of $0.50 plus Vat to be paid to the Revenue collector.

The debtor will make arrangement of payment and file his statement of affairs.

• He/she will need to file his salary or wages slip.
• Declare all personal information.
• Declare that he/she has or does not have any mortgage, insurances bill of sale, etc.
• Declare his/her assets or properties.
• Make an agreement of repayment with the Official Receiver Office.

As soon as may be after the making of the receiving order against a debtor a general meeting of his creditors shall be held for the purpose of considering whether a proposal for a composition or scheme of arrangement shall be accepted or whether it is expedient that the debtor shall be adjudged bankrupt.

1. Once a debtor has not made any payment for one month and if adebtor has defaulted repayment continually for the period of two months than the office will inform the Debtor by serving a 21 days’ notice to update the payments.
2. If the Debtor still defaults in payments after the notice, the Office of the Official Receiver will inform the Court by making an Application for Adjudication.
3. If the Debtor fails without reasonable excuse to comply with the requirements of this section, the court may, on the application of the official receiver, or of any creditor, adjudge him/her bankrupt.

• Full settlement – when the debtor fully meets the creditors claim and O/R fees. Creditors are paid.

1. The Receiving Order once the debts are fully paid by the debtor will be rescinded by the debtor or the Office of the Official Receiver.
2. If the Application for Recession is filed by the debtor, the OR Office will only file the Report of the Official Receiver stating that full and final payments has been made by the debtor and that OR Office has facilitated the payments to the creditors accordingly.