Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Bankruptcy law in Kano, Nigeria, is structured towards providing a fresh start for individuals who are unable to repay their debts. It is governed by the Bankruptcy Act of 1990. This law allows an individual to declare bankruptcy, leading to an automatic stay on all debts, which stops creditors from collecting debts and initiating lawsuits or garnishments.
Understanding and navigating bankruptcy law can be a complex process. Mistakes during this process could lead to dismissal of your case or inability to discharge your debts. A lawyer with knowledge in bankruptcy law can help you understand your legal rights, prepare and file your bankruptcy petition, represent you at credit meetings and court hearings, and can guide you to avoid potential pitfalls and successfully emerge from bankruptcy.
Although bankruptcy law in Nigeria is uniform, there are local procedural rules you must be aware of. Chapter 15 of the Bankruptcy Act outlines the procedure for filing bankruptcy in Nigeria. It stipulates the conditions under which an individual can be declared bankrupt, the steps creditors can take if a debtor fails to fulfil their obligations, the implications of a bankruptcy declaration for assets and properties, and the process of resolution.
To declare bankruptcy in Kano, a debtor must have a court declare him/her bankrupt. This can be instigated by the debtor, when one cannot pay his/her debts, or by a creditor, to whom the debtor owes a sum of NGN 1,000 or more.
All the debtor's assets, with some exceptions, will be vested in a trustee. The trustee will then sell the assets to repay the creditors.
After being declared bankrupt, the individual will find it challenging to secure credit in the future. The bankruptcy can remain on the credit report for up to 10 years in some cases.
Not all debts can be discharged in bankruptcy. Some non-dischargeable debts include alimony, child support, certain taxes, debts for certain educational benefits and student loans.
A bankrupt individual can open a new bank account, but certain restrictions apply. It is essential to disclose your bankruptcy status to the banking institution as failure to do so could result in legal action.
For additional resources, the Official Receiver's Office (ORO) in Kano can be a valuable source of information. The Nigerian Bar Association (NBA) can provide assistance in finding a legal counsel adept in bankruptcy law.
If you need legal assistance in bankruptcy, your first step should be to consult a lawyer specializing in bankruptcy law. They will review your financial situation and provide advice on whether bankruptcy is the best course of action for you. If it is, they will help you prepare and file the necessary documents with the court and represent you at meetings with creditors.
