LAW 603 Lecture Notes - Unsecured Creditor, Security Interest, Pro Rata
3 Mar 2014
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Authority to regulate bankruptcy and insolvency: canada constitution assigns the power to enact bankruptcy legislation exclusively to the federal government, the federal and bankruptcy and insolvency act provides a framework to administer the bankruptcy process. The bankruptcy and insolvency act is the most important statute relating to bankruptcy: tries to achieve a number of objectives. Provide timely orderly and equitable distribution of bankrupt"s assets. Promote confidence and certainty in the credit system: the bia applies to all canadian business, does not apply to banks, insurance/trust companies or railways. Restructuring may also be accomplished through proposals under the (bia) Bankruptcy and insolvency under the bankruptcy and insolvency act. Insolvency- is an inability of a debtor to meet its financial obligations to its creditors: many business operate in or near the state of insolvency. Corporate and consumer bankruptcy: there are different rules for each type of bankruptcy proceedings.
