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Bankruptcy and Debt law is an essential aspect of Nigeria's legal framework. In Calabar, Nigeria's law regarding bankruptcy and debt falls under federal law, applying through the Bankruptcy Act of Nigeria, but enforced by local courts. This law allows individuals and companies who cannot meet financial obligations to creditors because of incapacitating debts to declare for bankruptcy, giving them the possibility of a fresh financial start.
Understanding and navigating the intricacies of bankruptcy and debt laws can be quite challenging. A lawyer can guide you through processes such as filing for bankruptcy, debt consolidation, and debt settlement, amongst others. If you are facing severe financial difficulties, with creditors threatening or taking legal actions, a lawyer can offer you professional advice on the best steps to take. Companies facing insolvency can also benefit enormously from getting legal help for their potential bankruptcy cases.
In Nigeria, the Bankruptcy Act of 1990 governs bankruptcy cases. The Act outlines the bankruptcy proceedings to be followed, the consequences of bankruptcy, and the rights and obligations of the debtors and the creditors. Moreover, the Companies and Allied Matters Act (CAMA) plays a crucial role, particularly in matters of corporate insolvency. Understanding these complex laws and their applications requires professional legal assistance. Hence, acquiring the services of a learned lawyer is usually necessary.
The bankruptcy process involves declaring oneself unable to pay back the debts. A formal petition has to be filed with a local court. The debtor or creditors may initiate this process. Upon the court's approval, a trustee will be appointed to oversee the sale of debtor's non-exempt assets, after which the proceeds will be used to pay off the creditors.
While Nigeria's law does not provide for the imprisonment of persons for unpaid debt, failure to appear in court when summoned in relation to the debt could lead to arrest and detention.
Some of your assets may be sold to repay your debts. However, there are certain exemptions that protect necessary assets, like tools of trade, basic household furniture, among others, from being sold off. Again, you may choose to reaffirm some debts and keep those assets.
Typically, a bankruptcy can remain on your credit report for a period of up to 10 years from the date of discharge. This length of time may vary, though, depending on the specifics of your case.
No, not all debts can be discharged in a bankruptcy. Non-dischargeable debts include certain types of tax claims, debts for certain types of luxury goods or services, debts not listed in your bankruptcy papers, and most student loans.
Helpful resources include the official website of the Nigeria's Federal Ministry of Justice, which provides valuable legal information, and the Nigerian Law School, which has multiple legal resources available. For reliable legal information online, free resources like the LawPavilion Legal Research Software and the Nigerian Legal Information Institute are also available.
Should you need legal assistance regarding bankruptcy and debt in Calabar, the first step is to find a reputable lawyer who specializes in bankruptcy and debt law. Make sure to gather all relevant financial documents, including debts owed and assets owned. It's also vital to be frank and honest with your lawyer about your financial situation for them to be able to provide you with the best legal advice.
