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Bankruptcy Law in Abuja, Nigeria falls under the insolvency jurisdiction, designed to protect companies or individuals from the inability to meet their financial obligations. Under the Nigerian Bankruptcy Act (C7) 2004 and the Companies and Allied Matters Act (2004), these laws provide the legal procedures to declare insolvency or bankruptcy, either by voluntary petition or through court proceedings.
In navigating bankruptcy, you may require the services of a lawyer due to the complexity of the process. Common situations where a lawyer's expertise is invaluable includes when you are unable to pay your business debts, when a creditor claims you’re bankrupt, or when initiating voluntary bankruptcy proceedings. In addition, lawyers provide advice on the best course of action and can negotiate with creditors on your behalf.
The bankruptcy laws in Abuja are subject to the federal laws of Nigeria. Bankruptcy declaration can either be voluntary (where the debtor instigates proceedings) or involuntary (initiated by the creditors). Moreover, individuals can only declare bankruptcy after meeting certain conditions such as a minimum amount of debt with failed payment after demand, and possessing no contractual agreement on debt repayment with creditors.
When you declare bankruptcy, the court places an automatic stay on your debts which stops most creditors from collecting their debts. Your assets will also be evaluated and non-exempt properties will be sold to repay your debts.
The duration of bankruptcy proceedings varies depending on the complexity of the case. This could range from a few months to several years.
Insolvency is a financial state of being unable to pay debts whilst bankruptcy is a legal process that occurs when a person or business cannot repay their outstanding debts.
Yes, bankruptcy does not prevent you from starting a new business. However, access to credit could be more challenging due to a lower credit score.
Not all debts can be erased during bankruptcy in Nigeria. Some of the debts that cannot be erased include spousal support, child support, some tax debts, and any debt you incurred due to fraudulent activities.
For more assistance, the following sources may provide valuable insights:
If you need legal assistance with bankruptcy, consider reaching out to a lawyer specializing in bankruptcy or insolvency law. They can guide you through the process and help to manage the legal and financial complexities. You may also contact the Nigerian Bar Association for referrals to suitable legal assistance.
