Bankruptcy Act, 2009
An Act modernising the law of personal insolvency and bankruptcy in Sierra Leone, providing for the administration of insolvent debtors' estates.
Summary
The Bankruptcy Act, 2009 provides a modern framework for dealing with the insolvency of individuals and unincorporated debtors in Sierra Leone. It sets out the process by which a debtor who cannot pay their debts may be made bankrupt and their estate administered for the benefit of creditors.
The Act provides for acts of bankruptcy, the presentation of bankruptcy petitions by debtors or creditors, the making of bankruptcy orders, and the appointment of a trustee to collect, realise and distribute the bankrupt's property. It addresses the proof and ranking of debts, the discharge of the bankrupt, and offences connected with bankruptcy.
It forms part of the suite of commercial-law reforms of 2009 (alongside the Companies Act and others) intended to improve the business and credit environment.
Main provisions
- Provides for acts of bankruptcy and the presentation of bankruptcy petitions.
- Provides for the making of bankruptcy orders against insolvent debtors.
- Provides for the appointment of a trustee to administer the bankrupt's estate.
- Governs the proof, ranking and payment of creditors' claims.
- Provides for the discharge of the bankrupt and for bankruptcy offences.