GMGT 2060 Lecture 54: Lecture Notes All P 265

• School: University of Manitoba
• Department: General Management
• Course: GMGT 2060
• Professor: Alok Dua

Document Summary

This is a federal statute, and has a number of functions: sets up a uniform practice in bankruptcy and insolvency procedures, intended to be as inexpensive as possible. It sets out methods for reorganizing a debtor"s business by working out an arrangement with creditors 3. It attempts to provide for an equitable distribution of the debtor"s assets among the creditors 4. It releases the debtor to begin borrowing again. Federal bankruptcy and insolvency act passed in 1992, the act applies to three groups: insolvent persons potential bankrupts, persons who declare themselves bankrupt, and, persons who have been placed into bankruptcy by their creditors. Three differing procedures: proposal: an agreement to try and reorganize debt: maybe more time, lower amount of debt, lower level of interest. There are two kinds: consumer: made only by the individual whose debts, not including the debts secured by mortgage on a principle residence, total less than ,000.