Insolvency Act

245. When guarantor for bankrupt may prove claim

Edition: 2022-12-31 · In force

245. When guarantor for bankrupt may prove claim

(1)If, in relation to a bankruptcy—

(a)a person is, at the commencement of the bankruptcy, a guarantor of, or is otherwise liable for a debt of, the bankrupt; and

(b)the person discharges the debt or liability (before or after that commencement),

the person is entitled to the benefit to subsection (3) or (4), whichever is applicable to the person.

(3)If the creditor of the bankrupt has submitted a creditor's claim for the debt or liability, the person may stand in the creditor's place in respect of the claim.

(4)If the creditor has not submitted a creditor's claim form for the debt or liability—

(a)the person may prove for the payment that the person has made as if the payment were a debt, without disturbing dividends already paid to the creditor in the bankruptcy; and

(b)if the person does so, the person is entitled to receive dividends paid subsequently.

Division 21 — Distribution of Bankrupt's Estate

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Source: Kenya Law