ADVOKS GLOBAL · KENYA
Insolvency Act
118. Bankruptcy trustee may disclaim onerous property
Edition: 2022-12-31 · In force
118. Bankruptcy trustee may disclaim onerous property
(1)The bankruptcy trustee may disclaim onerous property, subject to section 121.(2)Subsection (1) applies even if the bankruptcy trustee has taken possession of the property, tried to sell it, or otherwise exercised rights of ownership in relation to it.(3)Within fourteen days after the disclaimer, the bankruptcy trustee shall send a notice of the disclaimer to every person whose rights are, to the bankruptcy trustee's knowledge, affected by it.(4)Property is onerous for the purposes of this section if it is or comprises—(a)an unprofitable contract;(b)property of the bankrupt that is unsaleable, or not readily saleable, or that may give rise to a liability to pay money or perform an onerous act; or(c)a litigation right that, in the opinion of the bankruptcy trustee, has no reasonable prospect of success or cannot reasonably be funded from the assets of the bankrupt's estate.