Section 58: Order to be given to initiate bankruptcy proceedings

1) If a petition is filed in the court pursuant to Section 55 to initiate the bankruptcy proceedings, the court shall make an order as to whether it would be appropriate to initiate the bankruptcy proceedings in respect of that petition or not.

2) If an order is made to initiate the bankruptcy proceedings pursuant to sub-section (1), the court shall, at the request of the person likely to become bankrupt himself or herself or of the creditor, order any other family member of such a person to maintain status quo of the assets of the person in respect of whose assets the bankruptcy proceedings are to commence, for the purpose of bankruptcy.

3) If the  court thinks that the assets of the person likely to be bankrupt may be embezzled or may not be properly managed if such a person or his or her family member is allowed to manage the assets, the court may, on the basis of the petition by the party or Suo motu, entrust the responsibility for management of such assets to any of the following persons:

(a) A person licensed as a bankruptcy professional pursuant to law,

(b) A bankruptcy trustee appointed pursuant to law,

(c) The concerned ward committee of the Local Level,

(d) Such an officer or employee of the court or law practitioner as designated by the court.

4) The Local Level, trustee or person designated pursuant to sub-section (3) shall manage the assets of the person likely to become bankrupt, in accordance with the order of the court.