Bankruptcy is a legal definition of a debtor’s inability to meet his debts as and when they become due. It is governed by the Bankruptcy Act 1967 (Revised 1988). Basically, the Act deals with the entire process by which an insolvent individual is made bankrupt, the administration of the bankrupt’s estate, and the discharge of bankrupts. Besides individuals, sole-proprietorships and partnerships can be made bankrupt. Although a deceased person cannot be made bankrupt, section 122(2) of the Bankruptcy Act 1967 provides that a petition may be presented to the Court for the administration of the deceased debtor’s estate accordingly.
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