Insolvency Law at Somalia
Somalia's insolvency framework is primarily governed by the Somali Civil Code, which includes provisions on insolvency and bankruptcy procedures. These provisions outline the processes for declaring insolvency, the rights and obligations of debtors and creditors, and the penalties for fraudulent activities related to insolvency.
⚖️ Key Provisions of the Somali Civil Code on Insolvency
Declaration of Insolvency: Insolvency is declared by a judgment delivered by the Court of First Instance of the district in which the debtor's domicile is situated, upon the petition of the debtor or one of his creditors. The case is heard as a matter of urgency. (Somali Civil Code | PDF | Annulment | Offer And Acceptance)
Considerations Before Declaring Insolvency: Before declaring a debtor insolvent, the court considers all circumstances surrounding the debtor, including future resources, personal ability, responsibility for the causes of insolvency, and the legitimate interests of creditors. (Somali Civil Code | PDF | Annulment | Offer And Acceptance)
Opposition and Appeal: The delay for entering opposition to judgments rendered in cases of insolvency is eight days, and for lodging an appeal, fifteen days from the date of the notification of judgment. (Somali Civil Code | PDF | Annulment | Offer And Acceptance)
Registration of Insolvency: Upon filing a suit for the declaration of insolvency, the registrar registers the writ in a special register of the names of persons who are insolvent. (Somali Civil Code | PDF | Annulment | Offer And Acceptance)
Alimentary Allowance: If creditors attach the revenues of a debtor, the President of the Court may, upon application by the debtor, grant an alimentary allowance to be taken out of the revenues attached. (Somali Civil Code | PDF | Annulment | Offer And Acceptance)
Penalties for Fraudulent Insolvency: A debtor is liable to penalties for misappropriation if, when proceedings for payment of a debt have been taken against him, he willfully renders himself insolvent in fraud of the rights of his creditors, or if, after the judgment declaring his insolvency, he has, in fraud of the rights of his creditors, kept back part of his property or falsely represented debts. (Somali Civil Code | PDF | Annulment | Offer And Acceptance)
Cessation of Insolvency: A state of insolvency ceases by virtue of a judgment of the Court of First Instance if it is established that the liabilities of the debtor are no longer in excess of his assets, or if the debtor effects payment of the debts that were due by him. (Somali Civil Code | PDF | Annulment | Offer And Acceptance)
🏛️ Legal Resources and Professional Assistance
For more detailed information or assistance regarding insolvency procedures in Somalia, you can consult the following resources:
Somali Advocates: Provides legal advice on insolvency matters to individual or company creditors with financial problems. (Bankruptcy Law – SOMALI ADVOCATES)
Generis Online: Offers insights into liquidation and insolvency procedures in Somalia, including legal grounds for liquidation, creditor rights, and the role of insolvency practitioners. (Understanding Liquidation and Insolvency Procedures in Somalia)
Salihi Law Office & Legal Services: Specializes in commercial litigation, including insolvency-related disputes. (Commercial Litigation – Salihi Law Office and Legal Services)
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