MCS 3040 Chapter Notes - Chapter 27: Official Receiver, Chapter 27, Personal Bankruptcy

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joe Radocchia

Document Summary

Unit 8: banking and debtor/creditor relationships (cid:894)(cid:272)o(cid:374)t"d(cid:895) a(cid:374)d e(cid:373)plo(cid:455)(cid:373)e(cid:374)t. Even when the economy is strong, businesses fail or falter for reasons such as: poor management lack of adequate financing, death or illness of a principal, fraud, economic downturn. Often it is best to try to solve financial problems by way of a negotiated settlement. Creditors may consider that the business can be salvaged; they may be willing to make concessions in terms of payment. Can be more or less formal depending on the circumstances. Key to negotiated settlements is ensuring that all creditors agree to the arrangement. When the parties reach an agreement, it is typically concluded with a contract that binds all. Trustee in bankruptcy officer assigned legal responsibility by the official receiver for administering the (cid:271)a(cid:374)krupt"s estate. Estate collective term for the assets of the insolvent or bankrupt. Invsolvent unable to meet financial obligations as they become due or having insufficient assets, if liquidated, to meet financial obligations.