(758) 468-3200
Government Saint Lucia
 
 
 
Home
/
Departments
/
Legislative Drafting
/
Revised Laws of Saint Lucia
/
COMMERCIAL CODE
/
564.   Discharge of bankrupt

Revised Laws of Saint Lucia (2021)

saint Lucia
back arrow Back to Revised Laws of Saint Lucia (2021)
back arrow Back to Table of Contents

CHAPTER 8
DISCHARGE OF BANKRUPT

564.   Discharge of bankrupt

  1.  

    (1)   A bankrupt may, at any time after being adjudged a bankrupt, apply to the Court for an order of discharge, and the Court shall appoint a day for hearing the application, but the application shall not be heard until the public examination of the bankrupt is concluded. The application shall be heard in open Court.

  1.  

    (2)   On the hearing of the application the Court shall take into consideration a report of the receiver as to the bankrupt's conduct and affairs (including a report as to the bankrupt's conduct during the proceedings under this or her bankruptcy), and may either grant or refuse an absolute order of discharge, or suspend the operation of the order for a specified time, or grant an order of discharge subject to any conditions with respect to any earnings or income which may afterwards become due to the bankrupt, or with respect to his or her after-acquired property: Provided that the Court shall refuse the discharge in all cases where the bankrupt has been convicted of any criminal offence connected with his or her bankruptcy, unless for special reasons the Court otherwise determines, and shall on proof of any of the facts hereinafter mentioned, either

    1.  

      (i)      refuse the discharge, or

    1.  

      (ii)     suspend the discharge for a period of not less than 2 years, or

    1.  

      (iii)      suspend the discharge until a dividend of not less than 50¢ in the dollar has been paid to the creditors, or

    1.  

      (iv)     require the bankrupt as a condition of his or her discharge to consent to judgment being entered against him or her by the receiver or trustee for any balance or part of any balance of the debts provable under the bankruptcy which is not satisfied at the date of the discharge, such balance or part of any balance of the debts to be paid out of the future earnings or after-acquired property of the bankrupt in such manner and subject to such conditions as the Court may direct; but execution shall not be issued on the judgment without leave of the Court, which leave may be given on proof that the bankrupt has since his or her discharge acquired property or income available toward payment of his or her debts:

  1.  

    Provided that if at any time after the expiration of 2 years from the date of an order made under this article, the bankrupt shall satisfy the Court that there is no reasonable probability of his or her being in a position to comply with the terms of such order, the Court may modify the terms of the order, or of any substituted order, in such manner and upon such conditions as it may think fit.

  1.  

    (3)   The facts hereinbefore referred to are—

    1.  

      (a)      that the bankrupt's assets are not of a value equal to 50¢ in the dollar on the amount of his or her unsecured liabilities, unless he or she satisfies the Court that this has arisen from circumstances for which he or she cannot be justly held responsible;

    1.  

      (b)      that the bankrupt has omitted to keep such books of account as are usual and proper in the business carried on by him or her and as sufficiently disclose his or her business transactions and financial position within 3 years immediately preceding his or her bankruptcy;

    1.  

      (c)      that the bankrupt has continued to trade after knowing or having reason to believe himself or herself to be insolvent;

    1.  

      (d)      that the bankrupt has contracted any debt provable in the bankruptcy without having at the time of contracting it any reasonable or probable ground of expectation (proof whereof shall lie on him or her) of being able to pay it;

    1.  

      (e)     that the bankrupt has failed satisfactorily to account for any loss of assets or for any deficiency of assets to meet his or her liabilities;

    1.  

      (f)     that the bankrupt has brought on or contributed to his or her bankruptcy by recklessness or by rash and hazardous speculation or by unjustifiable extravagance in living, or by gambling, or by culpable neglect of his or her business affairs;

    1.  

      (g)     that the bankrupt has put any of his or her creditors to unnecessary expense by a frivolous and vexatious defence to any action properly brought against him or her;

    1.  

      (h)     that the bankrupt has within 3 months preceding the date of the receiving order incurred unjustifiable expense by bringing a frivolous or vexatious action;

    1.  

      (i)     that the bankrupt has within 3 months preceding the date of the receiving order, when unable to pay his or her debts as they become due, given an undue preference to any of his or her creditors;

    1.  

      (j)     that the bankrupt has within 3 months preceding the date of the receiving order, incurred liabilities with a view of making his or her assets equal to 50¢ in the dollar on the amount of his or her unsecured liabilities;

    1.  

      (k)     that the bankrupt has on any previous occasion been adjudged bankrupt, or made a composition or arrangement with his or her creditors;

    1.  

      (l)     that the bankrupt has been guilty of fraud.

  1.  

    (4)   For the purposes of this article, a bankrupt's assets shall be deemed of a value equal to 50¢ in the dollar on the amount of his or her unsecured liabilities, when the Court is satisfied that the property of the bankrupt has realised, or is likely to realise, or with due care in the realisation might have realised, an amount equal to 50¢ in the dollar on his or her unsecured liabilities, and a report by the receiver or the trustee shall be prima facie evidence of the amount of such liabilities.

  1.  

    (5)   Every report of the receiver shall be prima facie evidence of the statements therein contained.

  1.  

    (6)   Notice of the appointment by the Court of the day for hearing the application for discharge shall be published in the prescribed manner, and sent 14 days at least before the day so appointed to each creditor who has proved, and the Court may hear the receiver and the trustee and may hear also any creditor. At the hearing the Court may put or allow to be put to the debtor such questions and receive such evidence as it may think fit.

  1.  

    (7)   The powers of suspending and of attaching conditions to a bankrupt's discharge may be exercised concurrently.

  1.  

    (8)   A discharged bankrupt shall, notwithstanding his or her discharge, give such assistance as the trustee may require in the realisation and distribution of such of his or her property as is vested in the trustee, and if he or she fails to do so he or she shall be guilty of a contempt of Court: and the Court may also if it thinks fit, revoke his or her discharge, but without prejudice to the validity of any sale, disposition or payment duly made or thing duly done subsequent to the discharge, but before its revocation.

  1.  

    (9)   If on the application of a bankrupt for his or her discharge, the only fact proved of the facts mentioned in paragraph (3) is that his or her assets are not of a value equal to 50¢ in the dollar on the amount of his or her unsecured liabilities, his or her discharge may be suspended for a period of less than 2 years, notwithstanding anything hereinbefore contained.

Address

2nd Floor Francis Compton Building, 
Waterfront,
Castries, Saint Lucia

Need help?

Site Map

HomeAbout AG OfficeDepartmentsAccessibilityContact Us

Quick Links

Inland Revenue Department of Government of Saint Lucia (IRD)Government of Saint Lucia Citizenship by Investment Financial Intelligence Authority

Important Links

CARICOMOECSFSRA
 
© 2024 Attorney General's Chambers
Site by