Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Bankruptcy law in Colombo, Sri Lanka, also known as Insolvency Laws, fall under The Companies Act, No. 07 of 2007. This act describes the rules and procedures surrounding personal or commercial distress and bankruptcy. Under this law, failed individuals or businesses are administered for the benefit of their creditors. The court has the power to assign trustees and liquidators who can take control of the debtor's assets and manage the properties for creditors' benefits.
Bankruptcy is a complex legal process, involving a lot of legal aspects as well as negotiations. You may require a lawyer under the following circumstances:
In Colombo, Sri Lanka, bankruptcy for individuals falls under section 402 of The Companies Act. If a debtor cannot repay his/her debts, the court deciphers if bankruptcy is correct. The court-appointed insolvency administrator takes over the bankrupted individual's assets and money to pay off the creditors. In the case of a company bankruptcy, liquidation under Sri Lankan law occurs. The assets of the insolvent company will be sold, and the proceeds will be distributed among the creditors.
When an individual is declared bankrupt, it means that the person is unable to meet his or her debt obligations and has filed a plea to be declared insolvent. The person in question's assets will be used to pay off the debt.
Usually, personal bankruptcy covers unsecured debt such as credit card bills, medical bills, and unsecured personal loans. However, student loans, child support, alimony, and certain tax obligations cannot be "erased" in a bankruptcy proceeding.
No, not necessarily. The law provides some exemptions that allow an individual to keep certain types of properties, depending on their values.
The time it takes to process a bankruptcy application would depend on the complexity of each individual case. However, generally, a straight forward bankruptcy case may take approximately 6 months to one year to finalize.
Filing for bankruptcy will negatively impact your credit score and it will remain on your credit report for seven years in case of Chapter 13 bankruptcy or ten years in case of Chapter 7 bankruptcy.
You may consult with the Department of the Registrar of Companies Sri Lanka, which maintains all records of businesses in the country including those that are bankrupt. Furthermore, the Department of Official Languages can provide information in your preferred language if necessary.
If you find yourself in need of legal assistance related to bankruptcy in Colombo, Sri Lanka, your next step should be to seek legal counsel. It is advised to contact a lawyer who specializes in insolvency and bankruptcy as they will be most equipped to guide you through the process. In addition, reach out to government bodies for advice and potential financial assistance during this process.
