ADVOKS GLOBAL · KENYA
Insolvency Act
109. When execution creditor may retain execution proceeds
Edition: 2022-12-31 · In force
109. When execution creditor may retain execution proceeds
(1)This section applies if a bankruptcy order has been made in respect of a debtor but, before the order was made, a creditor has—(a)issued execution against the debtor's property; or(b)attached a debt payable by the debtor.(2)If this section applies, the creditor may retain the benefit of the execution or attachment (including the proceeds) only if the creditor completed the execution or attachment—(a)before the bankruptcy order was made; and(b)before the creditor had notice that an application for such an order had been lodged.(3)The creditor may retain as against the bankruptcy trustee a payment made by the bankrupt in the course of the execution or attachment to avoid the execution or attachment as if—(a)the payment was the proceeds of the execution or attachment; and(b)the execution or attachment was completed when the payment was made.(4)The right of a creditor under this section to retain the benefit of an execution or attachment is subject to Division 19.