EFFECTS OF BANKRUPTCY
When a debtor is adjudged bankrupt, the main consequences according to the relevant legislation are as follows:
1. A person is appointed as trustee of the property of the bankrupt. The trustee has the administration of the bankrupt’s property.
2. Every debtor against whom a receiving order is made shall, unless prevented by sickness or other sufficient cause, attend the first meeting of his creditors and shall submit to such examination and give such information as the meeting may require. The bankrupt debtor has to provide aid to the utmost of his power in the realization of his property and the distribution of the proceeds among his creditors.
3. The property of the bankrupt shall vest in the trustee. The trustee may sell the property.
4. The trustee has to take all necessary measures for the distribution of assets (if any) between the debtors.
5. Where a bankrupt is an officer or clerk employed by the government or where he is in receipt of salary or income or pension, the trustee shall receive for distribution among the creditors so much of the bankrupt’s pay or salary as the Court on the application of the trustee may direct.
6. It is a criminal offence for a bankrupt to obtain credit to the extent of ten pounds or upwards from any person without informing that person that he is an undischarged bankrupt.
7. It is a criminal offence for a bankrupt to engage in any trade or business under a name other than that under which he was adjudicated bankrupt.
8. Where a debtor is adjudicated bankrupt, he shall be disqualified for being elected or holding or exercising a public office.
9. No person can institute legal proceeding against the bankrupt without the permission of the Court.
10. Judgments or orders can not be executed against the bankrupt’s property. Any creditor who has a claim or a judgment against the bankrupt may prove the relevant debt with an affidavit. After a debt is proven, the creditor’s name is included in the list of the creditors in case the bankrupt has any assets for distribution.