Debt recovery – KASNEB Syllabus



This paper is intended to equip the candidate with the knowledge, skills and attitudes that  will enable him/her to undertake debt recovery procedures in accordance with the law.


A candidate who passes this paper should be able to:

  • Evaluate the viability of recovering debts through legal proceedings
  • Comply with the procedures for recovery of debts through legal proceeding
  • Analyze the alternative models of debt recovery
  • Apply knowledge of insolvency law in an international


Debt and borrowing

  • Meaning of debt
  • Types of debt
  • Importance of borrowing
  • Debt instruments
  • Creditors and debtors rights
  • Debt collection options

Debt protection

  • Meaning of debt protection
  • Alternatives to debt protection
  • Debt protection insurance
  • Distinction between debt protection insurance and credit insurance

Debt management

  • Meaning of debt management
  • Types of debt management
  • Rescheduling debt
  • Extension of time
  • Foreclosure
  • Conversion of debt to equity
  • Payment of interest first
  • Suspended payments
  • Surrender of securities
  • Receivership

Preliminary considerations before initiating or defending debt

  • Recovery suits
  • Letters of demand
  • Capacity to sue
  • Mediation
  • Acknowledgement of debt
  • Evidence of indebtness
  • Statute barred debts
  • Viability of debt recovery
  • Availability of the debtor
  • Enforcement and execution

Debt recovery through legal suits

Institution of suit

  • Locus standi
  • Jurisdiction
  • Pleadings
  • Service of summons


  • Summary judgment
  • Attachment before judgment
  • Presentation of evidence

Judgement and decree

  • Extraction of decree
  • Execution of decree
  • Attachment and sale of property
  • Attachment of debts
  • Garnishee orders
  • Committal to civil jail

Alternative dispute resolution mechanisms

  • Negotiation
  • Conciliation
  • Meditation
  • Arbitration


  • Meaning
  • Nature of bankruptcy
  • Alternatives to bankruptcy
  • Bankruptcy proceedings
  • Rights of creditors
  • Consequences of bankruptcy
  • Discharge of a bankrupt

Dissolution of partnership

  • Break-up of a partnership
  • Effects of break-up
  • Restriction of ceasing to be a partner on or after break-up
  • Protection of property acquired after break-up
  • Winding up by partners
  • Distribution of partners assets on winding up
  • Dissolution of a partnership which has broken up
  • Power of court to appoint administrator
  • Order appointing provisional liquidator
  • Power of court to fix remuneration of receivers and managers
  • Appointment of a receiver as liquidator
  • Provisions relating to receiver or manager appointed

Insolvency law

  • Meaning of insolvency
  • Receivership
  • Types of liquidation
  • Official receiver/liquidator
  • Committee inspection
  • Distribution of assets
  • United Nations Commission on International Trade Law (UNCITRAL) legislative guide on insolvency law
  • United Nations Commission on International Trade Law (UNCITRAL) model law on cross border insolvency
  • World Bank    principles    and    guidelines    for    effective    insolvency             and creditors rights

Emerging issues and trends

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