LAW 603 Chapter Notes - Chapter 24: Canada Business Corporations Act, Secured Creditor, Affidavit
22 Jul 2016
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Law 603 chapter 24 notes: dealing with bankruptcy and insolvency. More than 80% of small businesses in canada fail during the first 5 years of operation. Insolvent: a person is insolvent when their debts exceed their assets, or they cannot meet their liabilities as they come due. Bankrupt: a person becomes bankrupt by assigning themselves into bankruptcy or as a result of a creditor applying to a court for a bankruptcy order against them. Stay: a stay is a suspension of legal proceedings against a debtor. Liquidation: is the sale of the debtor"s assets in return for money, which is liquid and can be distributed to the bankrupt"s creditors. Discharge: is the release of a debtor from bankruptcy status and the debtor is free of all of their pre-bankruptcy debts, subject to certain limited exceptions. Goal is to provide for the orderly and predictable distribution of the debtor"s assets amongst their creditors.
