Rescue, Rehabilitation and Insolvency (Corporate and Personal) Act 2026 · As enacted · Part VI
124. Second Bankruptcy
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
Where, before discharge, a Bankruptcy Order is made in respect of the bankrupt debtor for a second time –
subject to subsection (2), any property that is acquired by, or has passed to, the bankrupt debtor since the first Bankruptcy, including property acquired or that has passed since the second
Bankruptcy, shall be vested in the Bankruptcy
Trustee in the second Bankruptcy; and
any surplus in the second Bankruptcy is an asset in the estate in the first Bankruptcy, and shall be paid to the Bankruptcy Trustee in the first
Bankruptcy.
The court may, if it considers it appropriate, order that the following assets or their proceeds shall vest in the
Bankruptcy Trustee in the first Bankruptcy –
assets in the second Bankruptcy that, in the court’s opinion, were acquired independently of the creditor in the second Bankruptcy; and
Rescue, Rehabilitation and Insolvency
assets in the second Bankruptcy that devolved upon the bankrupt debtor.
Where the Bankruptcy Trustee receives written notice that a creditor has filed a petition for a second Bankruptcy, he shall –
hold property in possession that has been acquired by, or passed to, the bankrupt debtor since the first Bankruptcy until the application for a second Bankruptcy has been dealt with; and
transfer the property and its proceeds, less any deduction for the Bankruptcy Trustee’s fees, costs, charges and expenses, to the Bankruptcy
Trustee in the second Bankruptcy where the creditor’s petition results in a second Bankruptcy, or if a Bankruptcy Order is made in respect of the debtor on his own application.
Part VII
Personal Insolvency Register
Part VIII
Part IX
Part X
Compromises
Part XI
Micro Small Medium Enterprise (MSME) Company Debt Restructuring Arrangements
Part XII
Part XIII
Part XIV