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In Nairobi, Kenya, Creditor Law refers to the body of law that governs the relationship between creditors and debtors. Creditors are individuals or organizations that lend money or goods, while debtors are those who owe them. This branch of law sets forth the obligations, rights, and remedies of both parties in case of non-payment or breach of contract. It also covers the process of debt collection, insolvency, bankruptcy, and how protectable assets are treated.
There may be numerous instances where you need a lawyer regarding Creditor Law. For example, you may require legal help if you're struggling with debt collection, want to understand the legal aspects of loan agreements or dealing with a bankruptcy. Alternatively, as a creditor, you may need assistance to recover a loan, drafting creditor's rights papers or argue superior rights above other creditors. A specialized lawyer can provide the legal guidance needed and protect your interests during the process.
In Kenya, the Insolvency Act 2015 primarily governs matters related to bankruptcy and insolvency. It also outlines provisions for both individual and corporate debtors. Another significant law is the Banking Act, which regulates lending institutions, and the Companies Act 2015, covering issues such as winding up and liquidation. It's essential to understand these laws' key aspects, such as the legal procedures, rights for debtors, obligations for creditors, and insolvency rules.
According to Kenyan law, you have the right to receive notice before any action is taken, such as repossession or sale of your property. You also have the right to a fair hearing in a court.
In most instances, a creditor must first obtain a court order before seizing and selling your property to satisfy the debt.
If you're unable to settle your debts, you can file for bankruptcy or negotiate with your creditors for a debt repayment plan.
Certain assets, such as essential household goods and tools of trade, may be exempt from seizure. However, this varies depending on the situation and type of debt.
You should consider hiring a lawyer when disputes arise that you cannot resolve amicably with your creditor or debtor, or when you're uncertain of your rights or obligations.
The Business Registration Service, Office of the Attorney General, The Central Bank of Kenya, and The Kenya Law Reports are valuable resources for understanding Kenyan commercial, in particular Creditor Law. Aside from government bodies, organizations like the Law Society of Kenya can provide assistance and legal advice.
If you need legal assistance in Creditor Law, consider consulting a professional legal counselor who specializes in this area. Start your search by reaching out to law firms that have a robust commercial law department. It's important to share all the details of your case and ask about their charges upfront to ensure a smooth process.
