Cap. 13 ст. 534Liabilityforunpaid debts and rehabilitation. Where the bankrupt is a legal person. Where the bankrupt is a natural person. Cap. 16.

(1) Upon the instruction by the court, to the bankruptcy trustee to proceed to the sale of assets comprising the bankruptcy estate, the bankrupt shall, provided that there is no determination by the court of the bankruptcy being fraudulent:

(a) where the bankrupt is a legal person, be automatically discharged of all debts, and shall be struck off the relevant register, and any debts that shall remain unpaid following the sale of assets shall, where so provided in terms of law, become the personal liabilities of such other person or persons as so contemplated by law or by the constitutive documents of the legal person:

Provided that, insofar as required for the purposes of this sub-article, the bankruptcy trustee shall perform any duties that would ordinarily be assigned to the liquidator or such equivalent person being responsible for the winding up of the relevant legal person: Provided further that the bankruptcy trustee shall notify the competent authority of the discharge of debt, and the competent authority shall publish a notice of completion of bankruptcy proceedings within the records of the competent authority, to which the terms of the bankruptcy order shall be annexed; or

(b) where the bankrupt is a natural person, be deemed to be rehabilitated to trade, and may recover ipso jure the ownership and possession of his property, in whole or in part, under the conditions, if any, embodied in the bankruptcy order:

Provided that a stipulation that the bankrupt shall have no power to do any one (1) or various acts, whether of administration or of alienation, without the consent of the bankruptcy trustee, until the complete or partial fulfilment of the bankrupt’s obligations in terms of the income payment plan, shall be a valid stipulation, and shall have effect even against third parties who have contracted in good faith with the bankrupt alone:

Provided further that upon the fulfilment of the terms of the income payment plan, or upon the confirmation of the proposed terms of the bankruptcy order if these do not comprise an income payment plan, the bankrupt shall be automatically discharged of all commercial debts that may at any time previous to the declaration of bankruptcy have been claimed against him, and the payment of any commercial debt, or part thereof, of the bankrupt that shall remain unpaid following the full execution of the terms of the bankruptcy order shall be abated in full, to the benefit of the bankruptcy estate.

(2) Upon the rehabilitation to trade of a bankrupt, being a natural person, a notice of the rehabilitation shall be published by the bankruptcy trustee, in the Gazette and in any one (1) or more newspapers.

(3) Upon the rehabilitation to trade of a bankrupt, being a natural person, any personal debts of the bankrupt that shall remain unpaid following the full execution of the terms of the bankruptcy order, shall, by novation, become the personal liabilities of the rehabilitated bankrupt, provided that the novation of such debts shall, notwithstanding the provisions of article 1186 of the Civil

Code, be without prejudice to the preservation of any privilege or hypothec securing the debt:

Provided that an application may be made to the court by the rehabilitated bankrupt, by not later than twenty (20) days from the making of a bankruptcy order, for any of the aforementioned personal debts to remain the liabilities of the bankruptcy trustee, who shall continue to receive payment from the rehabilitated bankrupt against such personal debts, in terms of an agreement reached by and between the rehabilitated bankrupt and the relevant creditors thereof, until the respective personal debt has been satisfied in full, or until an earlier resolutive condition expressly stipulated in the agreement between the rehabilitated bankrupt and his creditor or creditors has been reached:

Provided further that the court shall only accede to a request made in terms of the first proviso, if it is satisfied that a valid agreement has been reached by and between the rehabilitated bankrupt and the relevant creditors thereof, and only after having received the assent of the bankruptcy trustee.

(4) The provisions of a bankruptcy order shall not be subject to change following the confirmation thereof, provided that amendment to the terms of an income payment plan comprising part of a bankruptcy order may be requested at any time prior to the fulfilment of the terms thereof, by:

(a) the bankrupt, in the event that, due to a material change in the circumstances of the bankrupt or his dependants, the obligations set out in terms of the income payment plan exceed the means of the bankrupt; or

(b) the creditors of the bankrupt, in the event that, due to a material change in the circumstances of the bankrupt, the bankrupt is able to make a greater contribution towards the payment of commercial debts that would otherwise be discharged.

(5) Any stipulation contained in the bankruptcy order, not being contrary to law, shall be valid. The aforementioned instrument may provide for the selection of one (1) or more persons, for the purpose of ensuring the execution of the terms thereof, of assisting in the sale of property if any such sale takes place, and of securing the distribution of the proceeds amongst the several creditors.

(6) A default in making payment according to the terms of the bankruptcy order shall have no effect on the abatement of debts discharged in terms of the provisions of this Part.