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Bankruptcy & Debt law in Onitsha, Nigeria mainly falls under the provision of Federal legislation. It's primarily regulated through the Bankruptcy Act and the Companies and Allied Matters Act (CAMA). In essence, these laws provide legal solutions to individuals or corporations who are unable to meet their financial obligations.
Debt and bankruptcy issues can be highly complex and distressing. Having a lawyer can help guide negotiations with creditors, prevent unlawful pressure from debt collectors and facilitate the legal proceedings if bankruptcy is being considered or necessary. A lawyer is critical in adequately understanding the nuances of the law, ensuring your rights are protected and providing the best possible defense or advice throughout the process.
The Companies and Allied Matters Act (CAMA) is the main law regulating the insolvency of companies, while the Bankruptcy Act governs the insolvency of individuals. CAMA provides for arrangements, compromises and mergers; and winding up (liquidation). Within the Bankruptcy Act, there are various protections, including allowing debtors to keep certain properties and setting up reasonable payment plans.
Bankruptcy in Nigeria begins with a petition, either by the debtor him/herself (voluntary bankruptcy) or by the creditor (creditor’s petition). Court procedures follow, and if adjudged bankrupt, a receiver is assigned to assess, gather and sell the debtor’s property to pay off creditors.
Not all debts may be dismissed in bankruptcy. Generally, secured debts are not written off, and obligations like family maintenance and child support, certain taxes and student loans aren't usually discharged.
While bankruptcy can help you manage your debts, it has serious repercussions which include damage to your credit rating, loss of some assets and potential restrictions on your financial and professional life.
In Nigeria, you automatically get discharged from bankruptcy a year after your bankruptcy order was made, but your bankruptcy details remain on the public record for up to six years.
Yes, depending on the type of bankruptcy filed and the particular circumstances of the business. Some businesses may continue operations during a restructuring process.
For additional resources, consider visiting the Nigerian Bar Association's website or the Legal Aid Council of Nigeria, both of which provide helpful information and can help connect you with legal professionals. Additionally, the National Industrial Court provides a number of resources relating to employment and debt within Nigeria.
If facing potential bankruptcy or overwhelming debt, it is essential you seek legal advice promptly. Contact a local lawyer specializing in bankruptcy and debt laws. Gather all relevant financial documents, and be ready to discuss your situation in detail. Never ignore legal notices or attempt to navigate complex bankruptcy procedures without legal guidance. Remember, taking quick action can ensure your rights and assets are protected.
