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9.-(1) Upon the issue of a receipt decree, an official receiver shall become the receiver of
the debtor’s property, and thereafter, except as provided by this Law, no creditor
to whom the debtor owes in respect of any debt which may be ascertained in bankruptcy
shall have any remedy against the property or person of the debtor in respect of the debt
or shall raise any suit or other legal process, except with leave of the Court and on
such terms as the Court may impose.
(2) But this section shall not affect the power of a secured creditor to dispose of or otherwise
deal with his security in the same manner as he would have been entitled to dispose of or deal with it if this section
had not been enacted.
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9/14/25, 11:38 AM The Bankruptcy Law – CHAP.5 – 10 – Power to appoint a temporary administrator
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(Ι)/2015
Power to appointment of a temporary receiver
10. The Court may, if it proves necessary for the protection of the debtor’s property,
at any time after the filing of a bankruptcy petition and before a receiving order is issued, appoint
the official receiver as a temporary receiver of the debtor’s property, or any part
thereof, with an order that he immediately take possession of the property or part thereof.
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9/14/25, 11:39 AM The Bankruptcy Law – CHAP.5 – 11 – Power to suspend pending proceedings
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(Ι)/2015
Power to suspend pending proceedings
11.-(1) The Court may, at any time after the submission of an application bankruptcy, to stay
any action, execution or other legal proceeding against the property or person of the
debtor, and any Court in which proceedings are pending against a debtor may, upon proof
that the bankruptcy petition was filed by or against the debtor, either stay the proceedings or
permit their continuance on such terms as it thinks just.
(2) Where the Court makes an order staying any action or proceeding, or stays
proceedings generally, such order may be served by sending a copy thereof, stamped
with the seal of the Court, by post to the address for service of the plaintiff or to any other
party who is bringing such proceedings.
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9/14/25, 11:39 AM The Bankruptcy Law – CHAP.5 – 12 – Power to appoint a special administrator
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(Ι)/2015
Power for appointment of a special administrator
12.-(1) The official receiver of the debtor’s estate, upon the application of any creditor or
creditors and if he is satisfied that the nature of the debtor’s estate or affairs or the interests
of the creditors generally require the appointment of a special administrator of the estate or affairs other than
the official receiver, may, subject to the approval of the Court, appoint a manager of the
property or business to act until a manager is appointed, and with such powers
(including any powers of a receiver) as may be delegated to him by the
official receiver.
(2) The special manager shall provide such security and shall be accountable in such manner as the Court
may direct.
(3) The special manager shall receive such remuneration as shall be fixed by the creditors by resolution
passed at an ordinary meeting subject to the approval of the Court, or in
default of such resolution as the Court may determine.
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9/12/25, 1:36 AM The Bankruptcy Law – CHAPTER 5 – 13 – Publication of a bankruptcy decree
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments CHAPTER
5 206(Ι)/2012 61(I)/2015
Publication of a receiving order
13. Notice of every receiving order stating the name, address and
description of the debtor, the date and the Court by which the order was issued, and the
date of the application shall be published in the Official Gazette of the Republic and shall be published in
two local newspapers, namely, one of which shall be published in the Turkish language and the other in the Greek
language in the prescribed manner.
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9/12/25, 1:36 AM The Bankruptcy Law – CHAPTER 5 – 14 – First and other meetings of creditors
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP. 5)
History of Amendments
CHAPTER 5 61(I)/2015
6. Meetings subsequent to the first meeting shall be convened by proxy.
First and other meetings of creditors
14.-(1) As soon as possible after the issuance of a receiving order against a debtor, a hearing shall be convened
general meeting of his creditors (referred to in this Law as the First Meeting of
Creditors) for the purpose of examining whether a compromise proposal or a plan
of arrangement can be accepted or whether it is advisable to declare the debtor bankrupt, and generally on the manner
of dealing with the debtor’s property. (2) Regarding the convening and procedure at the meetings of creditors, the
regulations of the First Schedule to this Law
must be observed .
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The Bankruptcy Law (CHAP.5)
FIRST ANNEX.
(Article 14.)
CREDITORS’ MEETINGS.
1. The first meeting of creditors shall be convened for one day not later than fourteen
days after the date of the receiving order unless the Court
for any special reason considers it advisable to convene the meeting for a later
day.
2. The official receiver shall convene the meeting by giving at least seven
days’ notice of the time and place thereof in the Gazette and in a local newspaper.
3. The official receiver shall also, as soon as may be, send to every creditor
named in the debtor’s statement of affairs a notice of the time and
place of the first meeting of creditors, accompanied by a summary of
the debtor’s statement of affairs, including the cause of its failure, and
any observations thereon which the official receiver thinks fit
to make. but the business of the first meeting shall not be invalidated by reason of such
notice or summary not being sent or received before the meeting.
4. The meeting shall be held at a place which in the opinion of the official receiver is
most convenient for the majority of the creditors.
5. The official receiver or administrator may at any time convene
a meeting of the creditors and shall do so whenever the Court so requests or
one quarter of the value of the creditors so requests in writing.
notice of the time and place shall be given to each creditor at the address stated
in his certificate or, if he has not so proved, at the address stated in the declaration
of the debtor’s affairs or at such other address as may be known to the person
calling the meeting.
7. The official receiver, or some person appointed by him, shall be the
chairman at the first meeting. The chairman at subsequent meetings. shall be such
person as the meeting may by resolution appoint.
8. A person shall not be entitled to vote as a creditor at the first or any
other meeting of creditors unless he has duly proved that
a debt is due to him in bankruptcy from the debtor and the proof has been duly filed before the time
appointed for the meeting.
9. A creditor shall not vote at any such meeting in respect of any unliquidated or
contingent debt or any debt the value of which has not been ascertained.
10. For the purposes of voting, a secured creditor, unless
he surrenders his security, shall state in his receipt the particulars of his security,
the date on which it was given and the value at which he values it, and shall be entitled to vote
only for the balance (if any) to which he is entitled after deducting the value of
his security. If he votes for the whole of his debt, he shall be deemed to have waived
his security, unless the Court, on application, is satisfied that the failure
to value the security arose from involuntary.
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11. The creditor does not vote for any debt on or secured by a current
bill of exchange or promissory note in his possession, unless he is prepared to
face the liability to him of every person previously liable
to the debtor and against whom no order of collection has been given, as security
in his hands and to assess the value of the dividend, to deduct it from
his receipt.
12. It shall be incumbent upon the trustee or official receiver, within twenty-eight
days after the use of evidence of the valuation of a security as aforesaid
at any meeting, to require the creditor to
surrender the security for the benefit of the creditors generally on payment of the value
so valued, with an addition thereto of twenty per cent.: the security
may, at any time before being required to surrender such security as
per cent. shall be made if the trustee requires the surrender of the security.
13. Where a receiving order is made against a partner of a company, any
aforesaid, correct such valuation by fresh proof and deduct the new
such value from his debt, but in such case no such addition shall be made. Twenty
creditor to whom such partner is jointly indebted with the other
partners of the company or any of them, may produce his debt to
vote at any meeting of creditors and shall be entitled to vote thereat.
14. The chairman of a meeting shall have power to accept or reject proofs
for the purpose of voting, but his decision shall be subject to the Court. If he is in
doubt as to whether the proof of a creditor should be accepted or rejected,
he shall mark the proof as an objection and permit the creditor to vote, provided
that the vote shall be declared invalid in the event of the objection being accepted.
15. A creditor may vote either in person or by proxy.
16. (1) Every instrument of power of attorney shall be in the prescribed form and shall be issued by
the official receiver of the debtor’s estate or, after the appointment of an administrator, by
the administrator, and any insertions thereto shall be in the handwriting of the person giving
the power of attorney or of any administrator or regular employee or other person.
(2) General and special forms of power of attorney shall be sent to the creditors,
together with a notice convening a meeting of creditors, and neither the name nor
description of the official receiver or any other person shall be
printed or inserted in the body of any instrument of power of attorney before
it is sent.
(3) A creditor may give a special proxy to any person to
vote at any specified meeting or adjournment thereof on all or any
of the following
matters: –
(a) for or against any particular proposal for composition or scheme of arrangement;
(b) for or against the appointment of any particular person as a manager with
a specified percentage or fee, or as a member of the inspection committee, or for or against the
continuance of any particular person as a manager or
member of the inspection committee;
(c) on all matters relating to any matter, other than those
mentioned above, arising at any specified meeting or
adjournment thereof.
17.
A creditor may give a general proxy to his director or employee
or to any
other person in his ordinary employment. In such case, the document
power of attorney shall state the relationship in which the person to act is with
the creditor.
18. No power of attorney shall be used unless deposited with the official recipient or
the administrator before the meeting at which it is to be used.
19. A creditor may appoint the official receiver of the debtor’s estate
to act in the manner specified as his general or special attorney.
20. The chairman of a meeting may, with the consent of the meeting,
adjourn the meeting from time to time and from place to place.
21. A meeting shall not have jurisdiction to act for any purpose other than the election
of a chairman, the proof of debts and the adjournment of the meeting unless at least three creditors or all the creditors if
their number does not exceed three are present
or represented at it .
22. If within half an hour from the time appointed for the meeting there is no
quorum of creditors or no representation, the meeting shall be adjourned to the same day in the
next week at the same time and place or to such other day as the chairman may appoint
, not less than seven days nor more than twenty-one days.
23. The chairman of every meeting shall be bound to draw up minutes of the proceedings of the
meeting and to enter them fairly in a book kept for that purpose and the
minutes shall be signed by him or by the chairman of the next meeting.
24. No person acting under either general or special power of attorney shall vote
in favour of any resolution which would directly or indirectly place himself,
his partner or his employer, in a position to receive any remuneration out of the
debtor’s estate, except as a creditor in proportion to the other creditors of the debtor: as
the case may be.
25. As soon as possible after the meeting of creditors, the official receiver
shall file with the Court a copy of the minutes of the proceedings and of the decisions
taken at that meeting.
26. The vote of the administrator or his partner, secretary, attorney or solicitor, whether
as a creditor or as a creditor’s proxy, shall not be counted in the majority
required for the passage of any resolution affecting the remuneration or
conduct of the administrator.
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9/12/25, 1:37 AM The Bankruptcy Law – CHAP.5 – 15 – Report of the state of the property and preliminary deposit of the bankrupt or…
PANCYPRIAN BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAPTER 5 206(I)/2012 61(I)/2015
Property status of the debtor
15.-(1) When a receiving order is issued against a debtor, the debtor shall prepare and submit to the
official receiver a statement of assets and liabilities in the prescribed form, which
shall be certified by affidavit, and which shall show the details of the assets, debts and
liabilities of the debtor, the names, addresses and occupations of his creditors, the securities
held by them respectively, the dates on which the securities were given respectively
and such further or other information as may be specified or which the official receiver
may request.
(2) A statement of assets shall be filed within the following time limits, namely:
(a) if the order is issued at the request of the debtor, within three days from the
date of issue of the order
(b) if the order is issued at the request of a creditor, within seven days from the date
of issue of the order.
The Court may, however, extend the time for special reasons in any case.
(3) If the debtor without reasonable excuse fails to comply with the requirements of
this section, the Court may, at the request of the official receiver, or any creditor,
declare him bankrupt.
(4) Any person who declares in writing that he is a creditor of the bankrupt may, in person or
by proxy, inspect the estate within a reasonable time and obtain a copy
thereof or an extract therefrom, but any person who falsely declares that he is a creditor shall be
guilty of contempt of Court and shall be punished accordingly upon application by the administrator or official
receiver.
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9/12/25, 1:37 AM The Bankruptcy Law – CHAPTER 5 – 16 – Public examination of a debtor
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP. 5)
History of Amendments
CH.5 206(I)/2012 61(I)/2015 CH.5 206(I)/2012 61(I)/2015
Public examination of debtor
16.-(1) Where the Court issues a receiving order, except as provided by this Law, it shall
hold a public hearing on a day appointed by the Court, for the examination of the debtor,
and the debtor shall be required to attend and be examined as to his conduct, dealings and property
.
(2) The examination shall be held as soon as may be after the expiry of the time limit for the submission of the
debtor’s statement of assets.
(3) The Court may adjourn the examination from time to time.
(4) Any creditor who has submitted a verification, or his representative authorized in writing,
may, at the discretion of the Court, put questions to the debtor regarding
the cases and the causes of his failure.
(5) The official receiver shall take part in the examination of the debtor, and for this purpose, if
specifically authorized by the Court, he may appoint a lawyer.
(6) If a trustee is appointed before the conclusion of the examination, he may take part in it.
(7) The Court may put any questions to the debtor that it considers appropriate.
(8) The debtor shall be examined on oath and shall be obliged to answer all questions that the
Court puts or permits to be put to him. Such minutes of the examination as the
Court may think proper shall be kept in writing and shall be read to the debtor and
signed by him or in the case of an illiterate debtor he shall put
his mark on the minutes, and which, except as otherwise provided in this Law, may be used as evidence
against him and such minutes shall also be available to any creditor for inspection at a
reasonable time.
(9) When the Court is of the opinion that the affairs of the debtor have been satisfactorily investigated
it shall by order declare the examination closed but such order shall not be made except after the day
appointed for the first meeting of creditors.
(10) Where the debtor is of unsound mind or suffers from any mental or physical disability or
incapacity which in the opinion of the court renders him incapable of attending
his public examination, the Court may make an order for the examination not to be held or order that the
debtor be examined on such terms, in such manner and at such place as the Court considers appropriate.
(11) On the application of the Official Receiver the Court may order that in the circumstances
of the case no public examination of the debtor be held if no useful purpose is served.
In such a case the Official Receiver shall attach to the application a statement of the debtor relating
to his affairs and property, as well as any other documents, for the information of the
creditors or other interested persons. If the Court considers it appropriate, it may order
that the debtor or the creditors, or any of them, be present at the hearing of the application.
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9/12/25, 1:37 AM The Bankruptcy Law – CHAPTER 5 – 16 – Public examination of debtor
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9/13/25, 5:10 AM The Bankruptcy Law – CHAPTER 5 – 17 – Compromises and settlement plans
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAPTER 5 206(Ι)/2012 61(Ι)/2015
Compromises and settlement plans
17.-(1) When a debtor intends to submit a proposal for a compromise in satisfaction of his debts,
or a proposal for a plan for the settlement of his affairs, he must, within four days of the filing
of his statement of assets, or thereafter within such time as the official receiver may
determine, submit to the official receiver a written proposal under his signature or on his behalf.
determine, incorporate the terms of the compromise or plan which he wishes to bring
to the attention of his creditors and set out details of proposed guarantors or real
security.
(2) In such a case the official receiver shall convene a meeting of creditors, before
the public examination of the debtor is concluded and shall send to each creditor, before the meeting,
a copy of the debtor’s proposal with a report thereon and if at the meeting it is decided to accept
such proposal by a majority in number and value of three-quarters of all creditors whose
debts have been verified, the proposal shall be deemed to have been duly accepted by the creditors
and when approved by the Court shall be binding on all creditors.
(3) At the meeting the debtor may amend the terms of his proposal if the
amendment, in the opinion of the official receiver, is intended to benefit all
creditors.
(4) Any creditor who has verified his debt may agree or disagree with
the proposal by letter, in the prescribed form, addressed to the official receiver in such
a way as to be received by him not later than the day before the meeting, and
such agreement or disagreement shall be as if the creditor had attended and voted at the meeting.
(5) The debtor or the official receiver may, after the proposal has been accepted by the creditors,
apply to the Court for approval of the acceptance, and notice of the time appointed for
the hearing of the application shall be served on every creditor who has verified his debt.
(6) No hearing of the application shall be held before the public examination of the debtor has been completed. Any
creditor who has verified his debt may be heard by the Court in an objection to the
application, regardless of whether he voted in favour of accepting the proposal at a creditors’ meeting.
(7) For the purpose of approving a compromise or plan proposed by co-debtors, the Court
may, if it considers it appropriate, and after a report by the official receiver that it is better to
act in this way, exclude from the public examination one of the co-debtors if due to
illness or absence from Cyprus he is unavoidably prevented from attending the examination.
(8) The Court, before approving the proposal, must hear a report from the official receiver as to
to the terms thereof, and as to the conduct of the debtor and any objections which may be
made by or on behalf of any creditor.
(9) If the Court is of the opinion that the terms of the proposal are not reasonable, or are not calculated to
satisfy all the creditors, or in any case in which it is requested by the
Court when the debtor has been declared bankrupt to refuse the restoration, the Court shall
refuse to approve the proposal.
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9/13/25, 5:10 AM The Bankruptcy Law – CHAP.5 – 17 – Compromises and Schemes of Arrangement
(10) If any facts are proved on the proof of which the Court would be
obliged either to refuse, suspend or to impose conditions on the debtor’s recovery if
he were declared bankrupt, the Court must refuse to grant the proposal, unless
provision is made for the furnishing of reasonable security for the payment of not less than five shillings to the pound for all
verifiable unsecured debts against the debtor’s estate.
(11) In any other case the Court may either approve or refuse to approve the
proposal.
(12) If the Court approves the proposal, the approval shall be evidenced by affixing the seal of the
Court to the document containing the terms of the proposed composition or scheme, or the
terms incorporated in an order of the Court.
(13) A composition or scheme accepted and approved under this section shall be binding on all
creditors in respect of any debts due to them by the debtor which
may be verified in bankruptcy.
(14) A certificate from the official receiver that a composition or scheme has been duly accepted and
approved shall, in the absence of fraud, be conclusive as to its validity.
(15) On the application of any interested person the Court may enforce
the provisions of a composition or scheme under this section and any disobedience to
an order of the Court made on the application shall be deemed to be contempt of Court.
(16) If there has been a failure to pay any instalment due under the composition or
scheme, or if it appears to the Court, on satisfactory evidence, that the composition or scheme
cannot, by reason of legal difficulties or for any sufficient cause, be carried out without injustice or
undue delay to the creditors or the debtor, or that the approval of the Court
was obtained by fraud, the Court may, if it thinks fit, on the application of the official
the receiver or administrator or any creditor, to declare the debtor bankrupt and to
set aside the composition or scheme, but without affecting the validity of any sale,
a disposition or regular payment, or act duly done, under or in accordance with the composition or
plan. When a debtor is declared bankrupt under this subsection, any debt which may
otherwise be verified, which was contracted before the debtor was declared bankrupt shall be
verified in the bankruptcy.
(17) If under or in accordance with the composition or scheme a trustee is appointed to manage the
debtor’s property and direct his affairs, or to distribute the composition, section 26 and
Part V of this Law shall apply as if the trustee were a bankruptcy trustee and the terms
“bankruptcy”, “bankrupt” and “bankruptcy order” included respectively a composition or
scheme of arrangement, a debtor who has entered into a composition or arrangement, and an order approving the
composition or scheme.
(18) Part III of this Law, so far as the nature of the case or the terms of the composition or
arrangement so permit, shall apply to them, giving the same interpretation to the words
“administrator”, “bankruptcy”, “bankrupt” and “bankruptcy order” as in the immediately
preceding paragraph.
(19) No composition or scheme may be approved by the Court which does not provide for the
payment, in priority to other debts, of the debts ordered to be paid on the distribution of
the bankrupt’s estate.
(20) The acceptance by a creditor of a composition or scheme shall not discharge any person who under
this Law would not be discharged by a restoration order if the debtor had been declared
bankrupt.
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9/14/25, 11:40 AM The Bankruptcy Law – CHAP.5 – 18 – Result of a compromise or plan
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(Ι)/2015
Result of a compromise or plan
18. Notwithstanding the acceptance and approval of a compromise or plan, such compromise or plan shall not
bind any creditor in respect of any debt or obligation from which, under the provisions of
such compromise or plan shall not be exempted by a decree of restoration, unless such creditor
consents to the compromise or plan.
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9/12/25, 1:49 AM The Bankruptcy Law – CHAP.5 – 19 – Declaration of bankruptcy when a compromise was not accepted or approved
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(I)/2015
Declaration of bankruptcy when a composition has not been accepted or approved
19.-(1) Where a receiving order is issued against a debtor, if the creditors at the first meeting or
at any adjournment thereof by their ordinary resolution resolve to declare the debtor bankrupt
, or if no resolution is taken, or if the creditors do not meet or if a composition
or plan is not approved in accordance with this Law within fourteen days from the conclusion of the examination of the
debtor or within such further period as the Court may allow, the Court
shall declare the debtor bankrupt and thereafter the property of the bankrupt shall be distributed among
his creditors and shall vest in the administrator.
(2) Notice of every decree declaring a debtor bankrupt, stating the name,
address and description of the bankrupt, the date of the declaration of bankruptcy and the Court
by which the bankruptcy was made, shall be published in the Official Gazette of the Republic and advertised in
two local newspapers, namely, one of which shall be published in the Turkish language and the other in the Greek
language, in the prescribed manner, and for the purpose of this Law the date of the decree shall
be the date of the declaration of bankruptcy.
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9/14/25, 11:41 AM The Bankruptcy Law – CHAPTER 5 – 20 – Appointment of a trustee of the bankrupt’s estate
The Bankruptcy Law (CHAP. 5)
CYPRUS BAR ASSOCIATION
History of Amendments
CH.5 61(I)/2015 212(I)/2022
Appointment of administrator
20.-(1) Where a debtor is declared bankrupt or where his creditors have decided that he should be
declared bankrupt, the creditors may by ordinary resolution appoint a competent person,
whether or not he is a creditor, to fill the position of administrator of the
bankrupt’s estate, or they may decide that the appointment of an administrator shall be left to the supervisory committee
referred to below.
(2) A person shall be deemed to be unfit to act as an administrator of the bankrupt’s estate if
he has previously been removed from the position of administrator of the bankrupt’s estate for misconduct or neglect
of duty.
(3) The person so appointed shall furnish security for such sum as
the Court may determine, and the Court, if satisfied with the security, shall certify that
his appointment was properly made, unless the debtor or creditor objects to the appointment, and the Court
is satisfied that the appointment was not made in good faith by a majority in value of the creditors voting,
or that the person appointed is not fit to act as administrator, or that his connection or relationship
with the bankrupt or his estate or with any creditor makes it difficult for him to
act impartially for the benefit of the creditors generally.
(4) The appointment of the administrator shall take effect from the date of the certificate.
(5) If a trustee is not appointed by the creditors within four weeks from the date
of the declaration of bankruptcy, or in the case where negotiations for a compromise or
scheme of arrangement are still pending after the lapse of four weeks, then within seven days from the end of
such negotiations with the refusal of the creditors to accept, or of the Court to approve, the
compromise or scheme of arrangement, the official receiver must report the matter to the Court
and the Court may appoint a suitable person as trustee of the bankrupt’s estate
or may order the official receiver to act as trustee.
(6) Where a debtor is declared bankrupt after the first creditors’ meeting has been convened and
no administrator has been appointed before the bankruptcy is declared, the official receiver shall immediately convene
a creditors’ meeting for the purpose of appointing an administrator.
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9/12/25, 5:59 PM The Bankruptcy Law – CHAPTER 5 – 21 – Supervisory Committee
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CHAPTER 5
Supervisory Committee
21.-(1) Creditors who have the right to vote may, at the first or any subsequent
meeting, by their decision, appoint a supervisory committee for the purposes of supervising the management of the
bankruptcy estate by the administrator.
(2) The supervisory committee shall consist of not more than five and not less than three
persons who possess one or other of the following qualifications-
(a) being a creditor or holder of a general power of attorney from a creditor, provided that
no creditor or holder of a general power of attorney or general power of attorney from
a creditor is entitled to act as a member of the supervisory committee until the creditor has verified
the debt to him and the verification has been accepted or
(b) being a person to whom the creditor intends to give a general power of attorney or general
power of attorney, provided that no such person is entitled to act as a member of the
supervisory committee until he has secured such power of attorney or general power of attorney and
until the creditor has verified the debt to him and the verification has been accepted.
(3) The supervisory committee shall meet at such intervals as the committee may from time to time
determine and in the event that no such time is determined, at least once a month and the administrator or
any member of the committee may also call a meeting of the committee as and when he deems
necessary.
(4) The committee may act by a majority of its members present at the meeting, but
shall not act unless a majority of the committee is present at the meeting.
(5) Any member of the committee may resign his office by written and signed
statement delivered to the administrator.
(6) If a member of the committee becomes bankrupt or makes a composition or arrangement with his creditors or
is absent for five consecutive meetings, his office shall be vacated.
(7) A member of the committee may be removed by ordinary resolution taken at any
meeting of creditors, of which seven days’ notice has been given stating the purpose of the meeting.
(8) In the event of a vacancy in the position of a member of the committee, the administrator shall immediately convene a meeting of
creditors for the purpose of filling the position, and the meeting may by resolution appoint another
creditor or other person, who is qualified as above, to fill the position.
(9) The members of the committee who remain, provided that they shall not be less than two, may
act independently of any vacancy in the committee, and when the number of members of the
supervisory committee existing at any time is less than five, the creditors may increase
the number so that it does not exceed five.
(10) If there is no supervisory committee, any act or thing or any direction or permission which is by
virtue of this law permitted or required to be done or granted by the committee may be done or
granted by the Court at the request of the administrator.
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9/12/25, 1:50 AM The Bankruptcy Law – CHAPTER 5 – 23 – Duties of bankrupts regarding the disclosure and liquidation of assets…
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CHAPTER 5 61(Ι)/2015
Debtor’s duties in relation to the disclosure and realisation of property
23.-(1) Every debtor against whom a receiving order has been issued shall, unless prevented
by illness or other sufficient cause, attend the first meeting of creditors and be
subject to examination and provide such information as the meeting may require.
(2) The debtor shall furnish such inventory of his property, such list of
his creditors and debtors as well as a list of the debts due from him to his creditors and the debts
due to him by his debtors respectively, shall be subject to examination of
his property or creditors, shall attend such other meetings of his creditors, shall appear at such intervals
before the official receiver, the special administrator or the administrator, shall execute powers of attorney,
transfers, contracts and documents and generally shall do all such things in relation to his property
and the distribution, among his creditors, of the proceeds of the liquidation as may reasonably be
required by the official receiver, the special administrator or the administrator, or as may be prescribed by
general regulations, or as may be ordered by the Court by any special order or orders
made in respect of a particular case, or as may be made at the special request of the official receiver.
receiver, special administrator, manager, or any creditor or interested person.
(3) When a debtor is declared bankrupt, he shall render every possible assistance for the liquidation
of his property and the distribution of the proceeds of the liquidation among his creditors.
(4) If a debtor wilfully fails to perform his duties imposed by
this section or to deliver up possession of any part of his property, which by virtue of this Law must be
distributed among his creditors and which is for the time being in his possession or control, to the
official receiver or administrator, or to any person authorized by the Court to
take possession thereof, the debtor, in addition to any other penalty to which he may be liable,
shall be guilty of contempt of Court and shall be liable to be punished accordingly.
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9/14/25, 11:41 AM The Bankruptcy Law – CHAP.5 – 25 – Resending letters of the bankrupt to another address
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Resending letters of the debtor to another address
25. When a receipt order is issued against debtor, the Court may from time to time, on the application of the official
receiver or the administrator, order that for such period,
not exceeding three months as the Court thinks fit, postal letters, telegrams
and other postal parcels sent to the debtor at any place, or places
referred to in the order for re-delivery, shall be re-sent, forwarded or delivered by the
Director-General of the Postal Services or his officers acting for him, to
the official receiver or the administrator, or otherwise as the Court may direct, and the same shall
be done accordingly. The signature of the official receiver or the administrator on any money
order payable to the debtor shall be a sufficient discharge thereof.
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9/12/25, 5:57 PM The Bankruptcy Law – CHAPTER 5 – 26 – Research into the behavior, transactions and property of bankrupts
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CHAPTER 5 61(Ι)/2015
Investigation into the conduct, transactions and property of a debtor
26.-(1) The Court may, at the request of the official receiver or the administrator, at any time after
the issuance of a receiving order against the debtor, summon the debtor or his spouse before it.
with him, or any person known or suspected to be in possession of any part of the property
of the property or belonging to the debtor or alleged to be indebted to the debtor, or owing
to the debtor, or any person whom the court may consider capable of furnishing
information relating to the debtor, his dealings or property, and the Court may
require any such person to produce any documents in his custody or
power relating to the debtor, his dealings or property.
(2) If the person so summoned after being offered a reasonable sum, refuses to
appear before the Court at the time appointed, or refuses to produce any such
document, without there being any lawful impediment which is known to and accepted by the Court
at the time of its sitting, the Court may, by warrant, order
his arrest and production for examination.
(3) The Court may examine on oath, either orally or by written questioning, any
person so summoned before it concerning the debtor, his dealings or
his property.
(4) If any person on examination before the Court admits that he owes the
debtor, the Court may, on the application of the official receiver or administrator, order
that person to pay to the official receiver or administrator, at such time and in such manner
as the Court thinks fit, the amount admitted to be due or any
part thereof, whether in full payment of the whole of the amount in question or not, as the Court
thinks fit, with or without the costs of the examination.
(5) If any person on examination before the Court admits that he is in
possession of any property belonging to the debtor, the Court
may, on the application of the official receiver or administrator, order that person to deliver up to the official
receiver or administrator such property or any part thereof at such time and in such manner and on
such terms as the Court may think just.
(6) The Court may, if it deems it appropriate, order that a person who was in the
Cyprus, would be liable to be produced before it under this section, be examined in any other place
place outside Cyprus.
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9/12/25, 1:50 AM The Bankruptcy Law – CHAPTER 5 – 27 – Rehabilitation of a bankrupt
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Rehabilitation of a bankrupt
27.-(1) A bankrupt may, at any time after his adjudication of bankruptcy, apply to the
Court for a decree of his restoration, and the Court shall appoint a day for the hearing of the
application, but the application shall not be heard before the public examination of the bankrupt has been completed. The
hearing of the application shall be held at a public sitting of the Court, unless the Court,
in accordance with regulations made under this Law, otherwise directs.
(2) On hearing the application the Court shall consider a report of the official receiver as
to the conduct and affairs of the bankrupt (including a report on the conduct of the
bankrupt during the bankruptcy proceedings) and may either make or refuse to
make an absolute order of restoration, or suspend the operation of the order for a specified period, or
make an order of restoration with conditions in respect of any earnings or income which
may later become due to the bankrupt, or in respect of
property subsequently secured by him:
Provided that where the bankrupt commits an offence under this Law, or under any
enactment repealed by this Law, or any other offence connected with
his bankruptcy, or any felony relating to the his bankruptcy, or when in any case
any of the following facts is proved, the Court must either:
(a) refuse the restoration, or
(b) suspend the restoration for such period as it thinks fit, or,
(c) suspend the restoration until a dividend of not less than
five hundred mils in the pound has been paid to the creditors
has been paid to the
creditors (d) require the bankrupt as a condition of his restoration to consent to the taking
against him a judgment by the official receiver or administrator for any balance or
part of the balance of the debts ascertainable in the bankruptcy which at the
time of the restoration has not been satisfied, and such balance or part of the balance of the
debts to be paid out of the future earnings or from the subsequently secured property of the
bankrupt in such manner and subject to such conditions as the Court may direct
but no order for the execution of the judgment shall be made without the leave of the Court, which leave
may be given on proof that the bankrupt has acquired after his restoration
property or income available for the payment of his debts:
Provided that, if at any time after the date of the making of a decree under this section, the
bankrupt satisfies the Court that there is no reasonable prospect of his being able to comply with
the terms of the decree, the Court may vary the terms of the decree, or
any substitute decree, in such manner and on such terms as it may deem
appropriate.
(3) The facts referred to above are:
(a) that the assets of the bankrupt are not of a value equal to five hundred mills in the pound on the
amount of his unsecured liabilities, unless the Court is satisfied that the fact
that his assets are not of a value equal to five hundred mills in the pound on the amount of his unsecured liabilities
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9/12/25, 1:50 AM The Bankruptcy Law – CHAP.5 – 27 – Restoration the bankrupt
of his insured liabilities is due to circumstances for which he cannot be held
justly responsible
(b) that the bankrupt failed to keep books of account which are customary and appropriate
to the conduct of his business and which adequately disclose his business
transactions and financial situation during the three
years immediately preceding his bankruptcy
(c) that the bankrupt continued to carry on trade knowing that he was insolvent
(d) that the bankrupt incurred a debt which is capable of being discharged in bankruptcy without having at
the time of the incurrence any reasonable or probable expectation (the burden of proof being on the
bankrupt) that he would be able to pay the debt
; (e) that the bankrupt failed to account satisfactorily for any loss of assets or
for any insufficiency of assets to meet his obligations
; (f) that the bankrupt caused or contributed to his bankruptcy by rash and
reckless speculative actions, or by reckless extravagance for his livelihood, or by
gambling or by criminal negligence in his business affairs
; (g) that the bankrupt has subjected any of his creditors to unnecessary expense by a frivolous
or vexatious defence in a suit brought; (
h) that the bankrupt caused or contributed to his bankruptcy by incurring unreasonable expense
in bringing any frivolous or vexatious action;
(i) that the bankrupt, within the three months preceding the date of the issue of the
receiving order, while being unable to pay his debts when they became
due, has shown undue preference to any of his creditors;
(j) that the bankrupt, within the three months preceding the date of the issue of the
receiving order, has undertaken obligations with a view to making his assets equal to
five hundred mils in the pound on the amount of the unsecured debts
; (k) that the bankrupt, in any of the foregoing cases either under this Law
or under any Law for the time being in force in Cyprus, has been declared insolvent; (l) that the bankrupt
was guilty of fraud or fraudulent breach of trust.
(4) For the purpose of removing any statutory disability which the bankruptcy entails
and which is removed if the bankrupt secures from the Court his restoration by a certificate ,
the Court
may, if it thinks fit, issue such certificate, but its refusal to issue such
certificate shall be subject to appeal.
(5) For the purposes of this section, the assets of the bankrupt shall be deemed to be of a value equal to five hundred
certifying that the bankruptcy is due to misfortunes without fault on his part, the Court
mills in the pound on the amount of his unsecured debts when the Court is satisfied that the
estate of the bankrupt has yielded or is likely to yield from the liquidation, or by
showing due diligence in the realisation of the estate could
realise, an amount equal to five hundred mills in the pound on his unsecured debts and the report
of the official receiver or administrator shall be prima facie evidence of the amount of
such liabilities.
(6) For the purposes of this section the report of the official receiver shall be prima facie
evidence of the statements contained therein.
(7) Notice of the Court fixing the day for hearing the application for restoration shall be
published in the prescribed manner and shall be sent not less than fourteen days before
the appointed day to every creditor who has verified the debt due to him and the Court may
hear the official receiver and the administrator as well as any creditor. At the hearing
the Court may put questions to the debtor and receive such evidence as the
Court may think proper.
(8) The powers to suspend the restoration of the bankrupt and to impose conditions on
his restoration may be exercised concurrently.
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9/12/25, 1:50 AM The Bankruptcy Law – CHAPTER 5 – 27 – Rehabilitation of bankrupts
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9/12/25, 1:51 AM The Bankruptcy Law – CHAP.5 – 28 – Procedure in case of failure of the bankrupt to submit an application for restoration of…
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Procedure in case of failure of the bankrupt to submit an application for restoration of
28. In case the bankrupt fails to submit an application for restoration of 28. to submit an application for reinstatement as stated
in the immediately preceding section, the official receiver, as soon as may be after the discharge of the
administrator by the Court, but not later than four years after the completion of the public
examination or the date of the order of the Court not to hold a public examination
as referred to in subsection (11) of section 16 if the administrator has not been discharged by then, shall
apply to the Court for consideration of the case for the rehabilitation of the bankrupt. The
Court may require the bankrupt to attend for consideration at a hearing held
in accordance with the provisions of this section and may make such order as it considers just
having regard to all the circumstances.
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9/14/25, 11:41 AM The Bankruptcy Law – CHAPTER 5 – 29 – Duties of reinstated bankrupts
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CHAPTER 5
Duties of reinstated bankrupts
29. The reinstated bankrupt, regardless of his reinstatement, must provide such
assistance as may be requested by the administrator for the liquidation and distribution of his property which
has come to the administrator and if he fails to act in this manner he will be guilty of contempt
of Court, and the Court may, if it deems it appropriate, revoke his restoration,
without however affecting the validity of any sale, disposition, payment or act
duly performed after the restoration, but before its revocation.
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9/12/25, 1:51 AM The Bankruptcy Law – CHAPTER 5 – 30 – Effect of a restoration decree
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Effect of a restoration decree
30.-(1) The restoration decree does not exempt the bankrupt from a debt due under a written
guarantee to the Court, nor from a fine or debt with which the bankrupt may be
burdened following a claim by the Republic (or any person) for any criminal
offence in violation of any Law or from a debt under a guarantee signed for the purpose
of the appearance of a person prosecuted for a criminal offence and the bankrupt is not exempt from
these exempted debts unless the Governor grants in writing under the signature of the Administrative
Secretary, his consent to his discharge from (2) The order of restoration shall not discharge the bankrupt from any debt
or obligation arising
from any fraud or fraudulent breach of trust in which he was a party, nor from any debt or obligation for
which he obtained a discharge by reason of any fraud in which he was a party.
(3) The order of restoration shall not discharge any person who at the date
of the order of reception was a partner or joint manager with the bankrupt or was jointly
liable with him or entered into a joint contract with him, or any person who was a guarantor or
was in a guarantor relationship with him.
(4) The order of restoration shall discharge the bankrupt from all other debts which may be
ascertained in the bankruptcy.
(5) The restoration order constitutes incontrovertible evidence of the fact of bankruptcy and the
validity of the bankruptcy proceedings and in any proceedings brought against the
bankrupt who has secured a restoration order in relation to a debt from which he was discharged
by the order, the bankrupt may claim that the actionable right arose before
his restoration.
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Power of the Court to annul a bankruptcy decree in certain cases
31.-(1) In the event that, in the opinion of the Court, the debtor should not have been declared
bankrupt, or if it is proven to the satisfaction of the Court that the debts of the bankrupt
have been paid in full, or have been settled, or the creditors have consented to the annulment of the
Decree, the A court may, on the application of any interested party, by order
set aside the declaration of the debtor as bankrupt.
(2) Where the declaration of bankruptcy is set aside under this section, all sales and dispositions
of property and all payments duly made and all acts done up to that time
by the Official Receiver, the administrator or any other person acting under their authority, or by
the court, shall be valid, but the property of the debtor declared bankrupt shall vest in
a person appointed by the court, or, if no such person is appointed, shall revert to the bankrupt
to the extent of his right or interest therein, on such terms and conditions as the
court may by order direct.
(3) Notice of the decree annulling the bankruptcy shall be published forthwith in the Official Gazette
of the Republic and shall be posted on the website of the Official Receiver in the prescribed manner.
(4) For the purposes of this section, any debt disputed by the bankrupt and any
debt due to a creditor who cannot be found or whose identity cannot
be determined shall be deemed to have been paid in full if deposited with the Court.
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The Bankruptcy Law (CHAP.5)
SECOND SCHEDULE.
(Section 37.)
PROOF OF DEBT.
Proof in Ordinary Cases.
1. Every creditor shall prove his debt as soon as possible after the issue
of the order for collection.
2. A debt may be proved by delivering or sending by post by
prepaid letter to the official recipient or, if a trustee has been appointed, to the
trustee, an affidavit verifying the debt.
3. The affidavit may be made by the creditor himself or by some person
authorized by or on behalf of the creditor. If made by a person so
authorized, it must state his authority and means of knowledge.
4. The affidavit shall contain or refer to a statement of accounts in which
the particulars of the debt are entered and the vouchers, if any, by
which the same may be substantiated are specified. The official receiver or administrator may at
any time require the production of the vouchers.
5. The affidavit shall state whether or not the creditor is a secured creditor
and if it is found at any time that the affidavit made by or on
behalf of the secured creditor has omitted to state that he is a secured
creditor, the secured creditor shall surrender his security to the official
receiver or administrator for the general benefit of the court. in error, and in such
case the Court may allow the affidavit to be amended
on terms relating to the payment of any dividends or in such other manner as the
Court may think just.
6. The creditor shall bear the costs of proving his debt, unless the Court
otherwise orders.
7. Every creditor who has filed a proof shall be entitled to see and examine the
proofs of other creditors before the first meeting and at any reasonable time.
8. The creditor who proves his debt shall deduct from it all trade
discounts, but shall not be obliged to deduct any discount not exceeding five
per cent of the net amount of his claim, which he may have agreed
to allow for payment in cash.
Proof by Secured Creditors.
9. If a secured creditor enforces his security, he may
prove the balance due to him, after deducting the net amount
realised.
10. If a secured creditor delivers his security to the official
receiver or administrator for the general benefit of creditors, he may prove the whole
of his debt.
11. If a secured creditor either does not realise or does not deliver
his security, before the classification for dividend, he shall state in his receipt the particulars
of his valuation, the date on which it was given and the value at which he values it, and
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he shall be entitled to receive a dividend only on the balance to which he is entitled after deducting the
assessed value.
12. (1) Where a security is so valued, the administrator may at any time
redeem it by paying to the creditor the assessed value.
(2) If the trustee is dissatisfied with the value at which a security is valued,
he may require the property included in
any security so valued to be offered for sale at such times and on such terms and
conditions as may be agreed upon between the creditor and the
trustee or as, in default of such agreement, the Court
may order. If the sale is by public auction, the creditor or the
trustee on behalf of the estate may offer or purchase: Provided
that the creditor may at any time, by notice in writing, require the
trustee to elect whether or not to exercise the power of redemption of the security or to demand
its disposal, and if the trustee fails to sign the notice. shall not be entitled to
exercise it; and the equity of the redemption, or any other interest in the
property comprised in the security vested in the trustee, shall
vest in the creditor and the amount of his debt shall be reduced by the amount at which
the security has been so valued.
13. Where a creditor has so valued his security, he may at any time
alter the valuation and evidence by proving to the satisfaction of the
trustee or the Court that the valuation and evidence were made in good faith on the basis of
an erroneous assessment or that the security has been diminished or increased in value from
its previous valuation. but any such alteration shall be at the creditor’s expense and on such
terms as the Court may direct, unless the trustee permits the alteration
without application to the Court.
14. Where a valuation has been altered in accordance with the rule aforesaid, the
a creditor shall forthwith repay any surplus dividend which he may have received
over and above that which he would have been entitled to on the amended valuation or, as the
case may be, shall be entitled to be paid out of any dividend which may have been
appropriated for the time being. to receive by reason of the inaccuracy of the original valuation, before
such moneys are applied to the payment of any future dividend, but he shall not be
entitled to disturb the distribution of any dividend declared before
the date of the amendment.
15. If a creditor after having valued his security subsequently realises it,
or if it is realised in accordance with the provisions of rule 12, the net amount
realised shall replace the amount of any valuation
previously made by the creditor and shall be treated in all respects
as an amended valuation made by the creditor.
16. If a secured creditor does not comply with the above rules, he shall be
excluded from any share in any dividend.
17. Subject to the provisions of rule 12, the creditor shall not in any
case receive more than twenty shillings in the pound and interest as provided by
this Act.
Evidence in respect of Separate Contracts.
18. If a debtor was at the date of the order liable for
separate contracts as a member of two or more distinct companies, or as a sole
contractor, as well as as a member of a company, the circumstance that the companies consist
wholly or partly of the same persons, or that the sole contractor is also one of the
contractual
contractors. the contracts.
Periodic Payments.
19. Where any rent or other payment becomes due at specified
periods and the order for collection is issued at any time other than one of those
periods, the person entitled to the rent or payment may prove
for a proportionate part thereof up to the date of the order as if the
rent or payment had accrued from day to day.
Interest.
20. For any debt or sum fixed, payable at a specified time or otherwise
, for which no interest is pledged or agreed, and which is due
at the date of the order and is proved in bankruptcy, the creditor may
prove for interest at a rate not exceeding nine per cent per annum up to the date of the order for collection.
date of the order from the time when the debt or sum of the debt was paid.
time, and if otherwise payable, then from the time when written notice has been given
claim notifying the debtor that interest will be charged from the date
of the claim until the time of payment.
21. On any debt or sum certain, payable at a certain time or otherwise,
for which interest is not pledged or agreed, and which is due at
the date of the order and is proved in bankruptcy, the creditor may
prove interest at a rate not exceeding four per cent per annum until the
date of the order from the time the debt or sum was payable by reason of
a certain amount. time, and if payable otherwise, then from the time
a written demand has been made notifying the debtor that interest will be charged
from the date of the claim until the time of payment.
Debt Payable at Further Time.
22. A creditor may prove that a debt is not payable when the debtor
has committed an act of bankruptcy as if it were payable at present, and may
receive dividends in the same way as other creditors, deducting only a deduction of interest at
the rate of nine per cent per annum, calculated from the statement of the time when
the debt should have been paid. contracted.
Acceptance or Rejection of Evidence.
23. The administrator shall examine each evidence and the reasons for the debt and in writing
admit or reject it, in whole or in part, or require further evidence
in support thereof. If he rejects a proof, he shall state in writing to the creditor the
reasons for the rejection.
24. If the administrator believes that a receipt has been wrongly accepted, the
Court may, on the application of the administrator, after notice to the creditor who
made the receipt, strike out the receipt or reduce its amount.
25. If a creditor is dissatisfied with the decision of the administrator in relation to a
receipt, the Court may, on the application of the creditor, set aside or
vary the decision.
26. The Court may also strike out or reduce a receipt on the application
of a creditor, if the administrator refuses to intervene in the matter, or in the case of a composition
or scheme, on the application of the debtor.
27. For the purpose of any of his duties in relation to receipts, the
administrator may administer oaths and take affidavits.
———————–Page 32 End————————-
28. The official receiver, before the appointment of an administrator, shall have all the powers
of an administrator in relation to the examination, acceptance and rejection of evidence and
any act or decision of his in relation thereto shall be subject to similar appeal.
———————–Page 33 End———————–
9/12/25, 6:00 PM The Bankruptcy Law – CHAPTER 5 – 37 – Regulations regarding the verification of debts
PANCYPRIAN BAR ASSOCIATION
The Bankruptcy Law (CHAPTER 5)
History of Amendments
CHAPTER 5
Regulations regarding the verification of debts
37. Regarding the manner of verification of debts, the right of verification of insured and other
creditors, the admission and rejection of verification and regarding the other matters referred to
in the Second Annex, the regulations included in that Annex shall apply.
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9/12/25, 5:55 PM The Bankruptcy Law – CHAP.5 – 41 – Description of the bankrupt’s property to be distributed among the creditors
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5
Description of the bankrupt’s property to be distributed among the creditors
41. The bankrupt’s property to be distributed among the creditors creditors, which in this Law
is referred to as the bankrupt’s estate, includes the following details:
(a) all such property as may belong to or be held by the bankrupt at the
commencement of the bankruptcy or which may have been acquired or come to him before his restoration
(b) the capacity to exercise and take proceedings for the exercise of all powers relating
to or connected with the estate which could be exercised by the bankrupt
for his benefit at the commencement of his bankruptcy or before his restoration
(c) all goods which, at the commencement of the bankruptcy, were in the possession, disposition,
or disposal of the bankrupt in the course of his trade or business, with
consent and permission of the real owner, under such circumstances that the bankrupt is
deemed to be the alleged owner thereof.
Provided that enforceable rights, other than debts due or which become due to the
bankrupt in the course of his trade or business, are not deemed to be goods within the
meaning of this article.
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9/14/25, 11:43 AM The Bankruptcy Law – CHAP.5 – 42 – Property not distributed among creditors
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 2(I)/2008 61(I)/2015
Property not distributed among creditors
42. The following are not part of the of the bankrupt’s property which is distributed among
his creditors, namely:
(a) property held by the bankrupt as a trust for any other
person
(b) all property which is exempt from execution under any Law for the time being in force in
Cyprus.
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9/14/25, 11:44 AM The Bankruptcy Law – CHAPTER 5 – 44 – Limitation of creditors’ rights based on execution or seizure in the hands of a third
party CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAPTER 5 61(Ι)/2015
Limitation of creditors’ rights based on execution or seizure in the hands of a third party
44.-(1) Where a creditor has issued an execution order against the goods or immovable property
debtor, or has seized into the hands of a third party a debt owed to him, such creditor is not entitled to
retain the benefit of the execution or seizure in the hands of a third party against the administrator of the
bankrupt the debtor, unless he completed the execution or seizure before the date
of the receipt order and before the notice of the filing of the bankruptcy petition by or against
the debtor, or, of the commission by the debtor of an act of bankruptcy.
(2) For the purposes of this Law, execution or attachment into the hands of a third party shall be deemed to be
completed-
(a) in the case of goods, objects or other movable property in the possession of the
debtor or bills of exchange, by their seizure and sale;
(b) in the case of goods, objects or other movable property to which the
debtor is entitled, subject to any right of attachment or right of any
person to direct possession thereof, by their seizure into the hands of a third party by a prohibitory
order and sale
; (c) in the case of land, houses or other immovable property or an interest therein, by
their seizure into the hands of a third party and their regular registration in the Land Registry
; (d) in the case of a seizure into the hands of a third party of a debt which is not a bill of exchange, by the
collection of the debt
; (e) in the case of shares of a public company or legal person, by
(f) in the case of property in the custody or control of a public officer
in his official capacity, or of the Court, by attachment to a third party by a prohibitory order
duly
issued and served.
(3) Execution effected by seizure and sale of the goods, effects or other
movable property of the debtor shall not be void by reason only of the fact that it is an act
of bankruptcy and a person who purchases the goods, effects or other movable property after
a sale effected by the enforcement officer shall in all
cases acquire a good title to them against the administrator in bankruptcy.
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9/14/25, 11:46 AM The Bankruptcy Law – CHAP.5 – 48 – Protection of transactions made in good faith without notice
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(I)/2015
Protection of transactions made in good faith without notice
48. Subject to the foregoing provisions of this Law relating to the effect of
bankruptcy on execution or seizure in the hands of a third party and in relation to the annulment of certain dispositions,
assignments and preferences, nothing in this Law shall annul in the event of bankruptcy-
(a) any payment made by the bankrupt to any of his creditors
(b) any payment or delivery to the bankrupt
(c) any concession or assignment by the bankrupt for appreciable consideration
(d) any contract, transaction or transaction by or with the bankrupt for appreciable
consideration.
Provided that both of the following conditions are met, namely-
(a) that the payment, delivery, transfer, assignment, contract, transaction or transaction,
as the case may be, is made before the date of the receiving order and
(b) that the person (other than the debtor) to, by or with whom
the payment, delivery, transfer, assignment, contract, transaction or transaction was made, executed, entered into,
did not have at the time of the payment, delivery, transfer, assignment, contract,
transaction or transaction, notice of the existence of any valid act of bankruptcy
committed by the bankrupt before that time.
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9/14/25, 11:49 AM The Bankruptcy Law – CHAPTER 5 – 49 – Acquisition and transfer of property
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP. 5)
History of Amendments
CH.5 206(I)/2012 61(I)/2015
Acquisition and transfer of property
49.-(1) Immediately upon the declaration of a debtor in bankruptcy, the property of the bankrupt shall vest in the
administrator. Until an administrator is appointed, for the purposes of this article the administrator shall be the
official receiver.
(2) Upon the appointment of an administrator the property shall be transferred and vest in the administrator so appointed.
(3) The property of the bankrupt shall be transferred by the administrator including, under this provision,
the official receiver when he fills the position of administrator from time to time provided that he holds
that office without any concession, assignment or transfer.
(4) In order for the official receiver or administrator to proceed with a sale, during the validity of the
receipt order or the order declaring the debtor bankrupt and before their cancellation,
the value of the sale must be greater than the cost of the bankruptcy proceedings for the
sale and distribution, otherwise the property will be returned to the debtor or the bankrupt,
as the case may be.
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9/14/25, 11:46 AM The Bankruptcy Law – CHAPTER 5 – 49 – Acquisition and transfer of property
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAPTER 5 206(Ι)/2012 61(Ι)/2015
Acquisition and transfer of property
49.-(1) Immediately upon the declaration of a debtor in bankruptcy, the property of the bankrupt shall vest in the
administrator. Until an administrator is appointed, for the purposes of this article the administrator shall be the
official receiver.
(2) Upon the appointment of an administrator, the property shall be transferred and vest in the administrator appointed.
(3) The property of the bankrupt shall be transferred by the administrator including under this term,
of the official receiver when he fills the position of administrator from time to time provided that he holds
that office without any concession, assignment or transfer.
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9/14/25, 11:50 AM The Bankruptcy Law – CHAPTER 5 – 50 – Possession of property by a trustee
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAPTER 5)
History of Amendments
CHAPTER 5 61(Ι)/2015
Possession of property by a trustee
50.-(1) The trustee must, as soon as possible, take possession of the contracts, books and
papers of the bankrupt, and all other parts of his property which may be
delivered by hand.
(2) The administrator shall, in relation to and for the purpose of taking or detaining possession of the property of the
bankrupt, be in the same position as if he were a receiver of the property appointed by the
court and the court may, on his application, order such taking or detaining.
(3) Where any part of the property of the bankrupt consists of securities, shares in ships,
stocks, or any other property transferred on the books of any company, office, or
person, the administrator may exercise the right of transfer of the property to the same extent
as the bankrupt could exercise it if he were not declared bankrupt.
(4) Where any part of the estate of the bankrupt consists of enforceable rights, such
rights shall be deemed to have been duly assigned to the administrator.
(5) Any treasurer or other officer or any banker, attorney, or agent
of the bankrupt shall pay and deliver to the administrator all moneys and securities in
his possession or power which such officer, banker, attorney, or agent
is not entitled by law to withhold against the bankrupt or administrator. If he fails to do
so he is guilty of contempt of Court and may be punished accordingly on the application
of the administrator.
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9/14/25, 11:50 AM The Bankruptcy Law – CHAP.5 – 54 – Powers of the administrator to manage property and power of conciliation of collateral…
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(Ι)/2015
Powers of the administrator to manage property
54. Subject to the provisions of the Law (a) to sell the whole or
any
part of the bankrupt’s property (including the
goodwill of the business, if any, and the debts recorded in the books which are due or will
become due to the bankrupt) by public auction or private contract, with
power to transfer the whole of the property to any person or company, or to sell it
piece by piece
; (b) to give receipts for moneys received from him, which receipts shall
effectively discharge the person paying the moneys from any liability in respect of
their disposition
; (c) to ascertain, to be ranked as a creditor, to claim and to collect a dividend in respect of
any debts due to the bankrupt
; (d) to exercise any powers, the exercise of which is conferred on the
administrator, by virtue of the this Law and to execute any powers of attorney, contracts and other
documents for the purpose of giving effect to the provisions of this Law.
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9/12/25, 6:00 PM The Bankruptcy Law – CHAPTER 5 – 55 – Powers that may be exercised by an administrator with the permission of the supervisory committee
CYPRUS BAR ASSOCIATION
Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(I)/2015
Powers that may be exercised by a trustee with the permission of the supervisory committee
55.-(1) The trustee may, with the permission of the supervisory committee, proceed to all or any
of the following actions:
(a) to carry out the affairs of the bankrupt, if necessary for the purpose of the beneficial
liquidation thereof
(b) to institute, receive, or defend a lawsuit or other legal proceeding relating to the
property of the bankrupt
(c) to appoint a lawyer or other representative to take any proceedings or to proceed to
any work that may be approved by the supervisory committee
(d) to accept as consideration for the sale any of the bankrupt’s property
a sum of money payable at a future time subject to such conditions as to security and
otherwise as the supervisory committee thinks fit
(e) to mortgage or pledge any part of the bankrupt’s property for the purpose of
securing money for the payment of the bankrupt’s debts
(f) to refer any dispute to arbitration, to settle debts, claims and liabilities,
whether present or future, determined or contingent, discharged or
undischarged, existing or which may exist between the bankrupt and
a person liable to the bankrupt, by the receipt of such sums,
payable at such intervals and generally on such terms as may be agreed upon
(g) to make a compromise or other arrangement which which he considers appropriate with the creditors or with
persons claiming as creditors, in respect of debts which may be ascertained in the bankruptcy
(h) to make such compromise or other arrangement as he considers expedient in respect of
any claim arising out of or relating to the estate of the bankrupt
which has been or is capable of being made to the administrator by any person or by the
administrator to any person
(i) to distribute according to the existing form among the creditors, according to the estimated
the value thereof, any property which due to its special nature or other special
circumstances cannot be sold immediately or profitably.
(2) The license granted for the purposes of this section is not a general license to do
all or any of the above-mentioned acts, but is only a license to do the
specific act or acts for which the license is requested in the specific case or
cases.
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9/12/25, 6:00 PM The Bankruptcy Law – CHAPTER 5 – 55 – Powers that may be exercised by an administrator with the permission of the supervisory committee
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9/14/25, 11:51 AM The Bankruptcy Law – CHAP.5 – 57 – Protection of official receiver and administrator from personal liability in certain cases…
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(Ι)/2015
Protection of official receiver and administrator from personal liability in certain cases
57. When the official receiver or If the official receiver or the administrator seizes or disposes of goods, articles, property or other
objects in the possession or on the premises of a debtor against whom
a receiving order has been issued, without notice of the existence of any claim by any person in respect
thereof and it subsequently appears that the said goods, articles, property or other objects did not
, at the date of the receiving order, constitute the property of the debtor, the official
receiver or the administrator shall not be personally liable for any loss or damage arising from
such seizure or disposal suffered by any person claiming such property, nor for the costs
of proceedings taken to prove the claim thereto, unless the Court is of the opinion
of proving that the official receiver or administrator was guilty of negligence in respect of the above.
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9/14/25, 11:52 AM The Bankruptcy Law – CHAPTER 5 – 58 – Declaration and distribution of dividends and return of property
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAPTER 5 206(Ι)/2012 61(Ι)/2015
Declaration and distribution of dividends and return of property
58.-(1) Subject to the retention of such sums as may be necessary for the expenses of the
administration, or otherwise, the administrator shall with all possible speed declare and distribute dividends among
the creditors who have verified their debts.
(2) The first dividend, if any, shall be declared and distributed within four months after the close of
the first meeting of creditors, unless the administrator satisfies the supervisory committee that
there is sufficient reason for postponing the declaration to a later date.
(3) If there is no sufficient reason to the contrary, subsequent dividends shall be declared and distributed
at intervals not exceeding six months.
(4) Before declaring a dividend the administrator shall cause to be published in the Official Gazette
of the Republic in the prescribed manner, notice of his intention to do so
and shall also send reasonable notice to every creditor who is mentioned in the statement of
the bankrupt’s affairs who has not verified the debt to him.
(5) When the administrator declares a dividend he shall send to every creditor who has verified the
debt to him a notice showing the amount of the dividend and when and how it is payable and a
statement in the prescribed manner of the particulars of the estate.
(6) Financial assets which remain undisposed of during the validity of the
receiving order or the order declaring the debtor bankrupt and before its cancellation shall be distributed
to the creditors after deducting any costs of the bankruptcy proceedings:
Provided that, where the costs of the bankruptcy proceedings of the distribution shall be greater than the
value of such distribution, the monetary property shall be deposited in the Consolidated Fund of the Republic.
(7) Monetary property which remains undisposed of after the annulment of the receipt order or the
order declaring the debtor bankrupt shall be returned to the debtor or the bankrupt,
as the case may be, after deducting the cost of the bankruptcy proceedings:
Provided that, where the cost of the bankruptcy proceedings for the return is greater than the value
of the property returned, the monetary property shall be deposited in the Consolidated Fund of the Republic.
(8) For any sum of money for which the official receiver or administrator is required to
pay a dividend and the creditor is not present, such sum, after the annulment of the decree
of receipt and the decree declaring the debtor bankrupt, shall be transferred to the Consolidated Fund of the
Republic and in the event that the sum is not received by the creditor within two years, the bankrupt
whose decree has been annulled shall be entitled to have such sum returned to him.
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9/14/25, 11:53 AM The Bankruptcy Law – CHAP.5 – 58 – Declaration and distribution of dividends and return of property
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 206(Ι)/2012 61(I)/2015
Declaration and distribution of dividends
58.-(1) Subject to the retention of such sums as may be necessary for the expenses of the
administration, or otherwise, the administrator shall with all possible speed declare and distribute dividends among
the creditors who have verified their debts.
(2) The first dividend, if any, shall be declared and distributed within four months after the end of the period
(3) Unless there is sufficient reason to the contrary, subsequent dividends shall be declared and distributed
at intervals not exceeding six months.
of the first meeting of creditors, unless the administrator satisfies the supervisory committee that
there is sufficient reason for postponing the declaration to a later date.
(4) Before declaring a dividend the administrator shall cause to be published in the Official Gazette
of the Republic in the prescribed manner, notice of his intention to do so
and shall also send reasonable notice to every creditor who is mentioned in the statement of
the bankrupt’s affairs who has not verified the debt to him.
(5) When the administrator declares a dividend he shall send to every creditor who has verified the
debt to him a notice showing the amount of the dividend and when and how it is payable and
a statement in the prescribed manner of the particulars of the estate.
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9/12/25, 1:53 AM The Bankruptcy Law – CHAPTER 5 – 70 – Duties of an official receiver regarding the property of a bankrupt
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAPTER 5 61(Ι)/2015
Duties of official receiver in relation to debtor’s property
70.-(1) In relation to the debtor’s property, it is the duty of the official receiver:
(a) pending the appointment of a receiver, to act as a temporary receiver of the
debtor’s property and, where no special receiver has been appointed, to act as the administrator thereof;
(b) to authorise the special receiver to raise money or make advances for
the purposes of the property in any case in which, in the interests of the
creditors, it appears necessary to do so;
(c) to convene and preside at the first meeting of creditors
; (d) to issue forms of proxy for use at meetings of creditors
; (e) to report to the creditors on any proposal which the debtor
may have made in relation to the property. way of settling his property affairs
(f) to publish the order of reception, the date of the first meeting of creditors and
the public examination of the debtor and such other matters as may be necessary to be
published
; (g) to act as administrator during a vacancy in the office of administrator.
(2) For the purpose of carrying out his duties as a provisional receiver or administrator, the official
receiver shall have the same powers as if he were a receiver and administrator appointed by the
Court but, so far as is practicable, shall take into account the wishes of the creditors in relation to
the management of the debtor’s estate and may for that purpose, if he thinks fit,
convene meetings of the persons claiming as creditors and shall not, unless the
Court otherwise orders, incur any expenditure beyond that which is necessary for the protection of
the debtor’s estate or for the disposal of perishable goods:
Provided that, where a debtor is unable himself to prepare a proper statement of
affairs, the official receiver may, subject to any specified conditions and at the expense
of the estate, employ a person or persons to assist in the preparation of the statement of affairs.
(3) Every official receiver shall be accountable to the Court and shall deposit all moneys and deal with
all securities in such manner as the Court may from time to time
direct .
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9/14/25, 11:28 AM The Bankruptcy Law – CHAP.5 – 87 – Jurisdiction to be exercised by District Courts
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The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5
Jurisdiction to be exercised by District Courts
87. The courts having jurisdiction in bankruptcy are the District Courts and, subject to
the provisions of this Law, in the exercise of such jurisdiction they shall have all the powers conferred by
provided to District Courts as in the trial of a civil action.
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9/14/25, 11:28 AM The Bankruptcy Law – CHAP.5 – 89 – Referral of a legal point for an opinion by the Supreme Court..
PANCYPRIAN BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5
Referral of a legal point for an opinion by the Supreme Court..
89. If a legal point is raised in a bankruptcy proceeding before a District Court, which
all the parties to the proceeding, or one of them and the judges thereof, wish to District Court
may wish, as first decided by the Supreme Court, the District Court
shall set out the facts, in the form of a special case, for the opinion of the Supreme Court. The special
case and the proceedings, or so much of them as may be required, shall be transmitted to the Supreme
Court for the purpose of decision.
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9/14/25, 11:28 AM The Bankruptcy Law – CHAP.5 – 90 – General powers and jurisdiction of Courts in bankruptcy
CYPRUS BAR ASSOCIATION
The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5 61(Ι)/2015
General powers and jurisdiction of Courts in bankruptcy
90.-(1) Subject to the provisions of This Act every Court having jurisdiction under
this Act shall have full power to decide all questions of priority and all other
questions of whatever nature, whether legal or factual, which may arise in any
bankruptcy case coming before the Court, or which the Court may decide in
expedient or necessary to decide in order to do full justice or to carry out
the complete distribution of the property in any such case.
(2) The Court shall have jurisdiction to hear and determine all questions of ownership which
relating to goods and immovable property to which there is a claim by or from the administrator
whether or not such property is in the possession of the administrator, and to determine and
adjudicate on any debt or claim due to or from the bankrupt.
(3) Where there is a failure to comply by any administrator, debtor or other person with
an order or direction of the Court under any power conferred by this Act, or where
a person is guilty of contempt of Court, the Court may, after hearing such person, or
after it is shown that he was duly summoned to appear in Court, order the imprisonment
of such person for any period not exceeding one month. And the Court may
at any time set aside such order, provided that the power conferred by this subsection
shall be deemed to be in addition to and not in substitution for any other right or remedy in respect of
such failure.
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9/14/25, 11:29 AM The Bankruptcy Law – CHAP.5 – 91 – Bankruptcy Courts in Cyprus to be auxiliary to other British Courts…
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The Bankruptcy Law (CHAP.5)
History of Amendments
CHAP.5
Courts bankruptcy in Cyprus to be auxiliary to other British Bankruptcy Courts
91. The Courts having bankruptcy jurisdiction in Cyprus and the officers of
those Courts respectively shall assist and be auxiliary to the British Courts
wherever situated which have bankruptcy jurisdiction, and an order of such British Court wherever
situated as aforesaid requesting assistance by application to a Court
in Cyprus having bankruptcy jurisdiction shall be deemed sufficient to enable the
Court of Cyprus to exercise, in relation to the matters specified in the order, the
jurisdiction which either the Court which made the application or the Court to which the application is made
submitted, they would be able to practice in relation to a similar matter within their jurisdiction.
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9/14/25, 11:29 AM The Bankruptcy Law – CHAP.5 – 93 – Discretionary powers of the Court
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CHAP.5
Discretionary powers of the Court
93.-(1) Subject to the provisions of this Law and the general regulations, the costs of any
proceedings under this Law before a Court or in connection with such proceedings shall be in the
discretion of the Court.
(2) The Court may at any time adjourn any proceedings before it on such terms, if
any, as the Court thinks fit to impose.
(3) The Court may at any time vary any writ or proceeding under
this Act on such terms, if any, as the Court thinks fit to impose.
(4) Where by this Act or by general regulations the time for doing any
act is limited, the Court may extend the time either before or after the expiry of that time, on
such terms, if any, as the Court thinks fit to impose.
(5) Subject to the general regulations, the Court may, in any matter, take
the whole or any part of the evidence either orally or by written questionnaire or by affidavit or by
foreign warrant.
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9/14/25, 11:30 AM The Bankruptcy Law – CHAP.5 – 95 – Power to change the conduct of the procedure
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History of Amendments
CH.5 61(I)/2015
Power to change the conduct of the proceedings
95. When the applicant does not proceed with due diligence in his application, the Court may
substitute as applicant any other creditor to whom the debtor may owe an amount
required by this Law in the case of the applicant creditor.
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9/14/25, 11:30 AM The Bankruptcy Law – CHAP.5 – 97 – Power to stay proceedings
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Power to stay proceedings
97. The Court may at any time, for sufficient reason to issue an order suspending the bankruptcy petition proceedings
either completely or for a limited time, on such terms and subject to
such conditions as the Court considers just.
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9/14/25, 11:31 AM The Bankruptcy Law – CHAP.5 – 102 – Formal defect does not invalidate a procedure
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The Bankruptcy Law (CHAP.5)
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CHAP.5 61(Ι)/2015
Formal defect does not invalidate a procedure
102.-(1) No bankruptcy procedure shall be invalidated due to formal defect. defect or irregularity,
unless the Court before which the objection to the proceedings was made is of the opinion
that substantial injustice was caused by the defect or irregularity and that the injustice cannot be
remedied by any order of that Court.
(2) No defect or irregularity in the appointment or election of a receiver, administrator or member of
a supervisory committee shall invalidate an act performed by him in good faith.
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9/14/25, 11:32 AM The Bankruptcy Law – CHAPTER 5 – 103 – Summary management in small cases
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The Bankruptcy Law (CHAP.5)
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CHAPTER 5 206(I)/2012 61(I)/2015
Summary administration in small cases
103.-(1) Where an application is made by or against a debtor, if the Court is satisfied on
oath or otherwise that, or the official receiver states to the Court that the debtor’s estate is not
likely to exceed two hundred pounds, the Court may make an order that the administration of
the debtor’s estate be done in a summary manner and thereafter the provisions of this Act
shall be subject to the following modifications:
(a) if the debtor is declared bankrupt, the official receiver shall be the bankruptcy trustee
(b) there shall be no supervisory committee, but the official receiver may, with the leave of the
Court, do anything which could be done by the trustee with the leave of the
supervisory committee
(c) in any such case no attorney’s fees shall be allowed, except on
a certificate of the Court that the appearance of an attorney as aforesaid was necessary.
(2) Such other modifications may be made to the provisions of this Law as may be
prescribed by general regulations for the purpose of saving expense and simplifying the procedure,
but nothing in this section shall permit the modification of the provisions of this Law
relating to the examination or discharge of the debtor.
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9/14/25, 11:55 AM The Bankruptcy Law – CHAP.5 – 110 – The Official Gazette of the Republic constitutes evidence
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The Bankruptcy Law (CHAP.5)
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CHAP.5 61(Ι)/2015
The Official Gazette of the Republic constitutes evidence
110.-(1) Copy of Official Gazette of the Republic containing any notice
registered therein under this Law shall be evidence of the facts set out in the
notice.
(2) The production of a copy of the Official Gazette of the Republic containing a notice
of a bankruptcy decree, or of a decree declaring a bankrupt bankrupt, shall be
conclusive evidence in all proceedings of the decree duly made and of the
date of the decree.
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9/14/25, 11:55 AM The Bankruptcy Law – CHAP.5 – 111 – Evidence of proceedings at creditors’ meetings
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Evidence of proceedings at creditors’ meetings
111.-(1) Minutes of proceedings at a creditors’ meeting under this Law, signed at the same or
the immediately following meeting, by a person who is described or who appears to be
the chairman of the meeting at which the minutes were signed, shall be taken as evidence without further
proof.
(2) Until the contrary is proved, every meeting of creditors in respect of the proceedings at which
a minute was so signed shall be deemed to have been duly convened and held and all
resolutions passed or proceedings conducted thereat shall be deemed to have been passed or conducted thereat.
in the normal manner.
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9/14/25, 11:56 AM The Bankruptcy Law – CHAPTER 5 – 112 – Evidence of bankruptcy proceedings
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The Bankruptcy Law (CHAP.5)
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CHAPTER 5
Evidence of bankruptcy proceedings
112. An application or copy of an application for bankruptcy, an order or certificate or a copy of an order or
certificate issued by a Court having bankruptcy jurisdiction, any document or
copy of a document, affidavit, or document made or used during
a bankruptcy proceeding or other proceeding under this Law shall be admissible as evidence in
all legal proceedings, if it appears to have been sealed with the seal of a Court having
bankruptcy jurisdiction or purports to have been signed by a judge. of this Court or certified as a true
copy by a Registrar of this Court.
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