Exam 27: Bankruptcy and Insolvency

Treats 'n More Bakery Inc.expects that bankruptcy proceedings will be commenced against it within the next month,and the owner has just transferred the title of its commercial ovens to her sister.How will this transaction be viewed by the bakery's creditors?

A contractual agreement between the debtor and creditors that allows an insolvent debtor to reorganize and continue in business is legally described as an assignment in bankruptcy.

Which of the following is a distinguishing characteristic of a preferred creditor,with respect to distributing the proceeds of a bankrupt's estate to creditors?

Which of the following would most strongly support a type of superior priority when distributing the proceeds of a bankrupt's estate to creditors that allows employees to be paid from a government fund that would then have a subrogated claim against the estate?

Which of the following is most frequently the result of proving that the value of assets was less than half the liabilities?

How does a creditor provide formal notice to the trustee of the amount owed and the nature of the debt?

Which of the following would most likely be applicable to the Canada Revenue Agency with respect to a bankrupt's unremitted payroll deductions?

What are fraudulent preferences,reviewable transactions,and fraudulent conveyances?

Explain what preferred creditors reflect,and list the permitted preferred creditors prescribed in the Bankruptcy and Insolvency Act.

What is a debtor's recourse in the all too common circumstances where the debtor's lack of financial resources renders it unable to retain the services of a trustee in bankruptcy?

What legislation allows a debtor to seek remedies in order to bring closure to its obligations when a creditor has indicated that the debt is unworthy of the time it would take to collect?

Which of the following entails high interest rates and fees and ranking ahead of most other debts?

Which of the following best describes the purpose of bankruptcy and insolvency law?

In what way are a debtor,a creditor,and a trustee treated similarly under the Bankruptcy and Insolvency Act?

Secured creditors with properly perfected security interests are entitled to take possession of their collateral and dispose of it,regardless of bankruptcy.

Which of the following is a distinguishing characteristic of trustees in bankruptcy?

How long after the assignment into bankruptcy should a bankrupt in a first-time personal bankruptcy expect to wait before being discharged from bankruptcy?

A payment made with the intention of giving a related person priority over at least one other creditor within one year of a bankruptcy order is described under the Bankruptcy and Insolvency Act as a reviewable settlement.

What is the legal effect if the creditors reject the debtor's Division I proposal?

Explain what a proof of claim is and the procedure involved once a proof of claim has been submitted.