MCS 3040 Chapter Notes - Chapter 27: Unsecured Creditor, Secured Creditor, Personal Bankruptcy
Document Summary
Bankruptcy protection in canada: two primary pieces of legislation govern insolvency law in canada are: There are a number of other statutes and common law rules that affect bankruptcy and insolvency too though. Proceedings before bankruptcy: should a negotiated settlement fail and the business decides that declaring bankruptcy is the best/only option, they will need the services of a trustee in bankruptcy. These are professionals who are licensed by the office of the. Superintendent of bankruptcy and have legal authority to administer the bankruptcy process. A business must have sufficient assets to pay for the trustee"s services: the trustee will begin to assess the estate (collective assets of a business or individual) and prepare a preliminary status of assets and liabilities. Is unable to meet its obligations as they become due, or. Has ceased paying its obligations as they become due, or. Has assets with a fair market value less than its liabilities.