Exam 29: Creditors Rights

In a bankruptcy proceeding,the creditors can,if they wish,appoint

What is the object of bulk sales legislation?

The court might refuse a debtor's discharge by bankruptcy for any of the following reasons EXCEPT that

To what extent does building lien legislation really protect subcontractors,workers,and suppliers of goods,and who really benefits?

Businesses are often required to extend credit as a means of increasing sales.Before granting credit,businesses are encouraged to take any of the following steps EXCEPT

Use the fact situation in Q2 to answer the related question that follows. Assume that by March 2009,the company's business was starting to recover,but the company was still insolvent.In this case,instead of voluntarily assigning itself into bankruptcy,General Widgets could have

Robert Badger operated a hardware business as a sole proprietorship and owed $200 000 to creditors.On June 1,1998,he transferred $20 000 of inventory to Smith Supplies Inc.to pay in full the indebtedness he owed that company.At the time he was not paying his debts as they became due.Instead he paid some money towards accounts when pressed,or he negotiated with them to give him more time to pay.On July 15,he transferred a truck used in the business for one dollar to his cousin.On July 2h,a creditor obtained a default judgment and the sheriff seized goods on July 28 in relation to that judgment.The goods were later sold in a judicial sale.On July 29,he purchased on credit $15 000 worth of new inventory.On August 14,a creditor petitioned him into bankruptcy.List each incident where there is an act of bankruptcy.Discuss Robert's situation in relation to the provisions of the Bankruptcy and Insolvency Act.

Provincial legislation regarding fraudulent transfers goes further than the Bankruptcy and Insolvency Act.Explain.

Use the fact situation in Q2 to answer the related question that follows. In light of the history of the company prior to its bankruptcy,in determining whether the payment made to the largest supplier is a fraudulent preference,the court will also consider

Bo Red operated Bo's Appliance,a retail appliance business,from premises he was leasing.He sold his complete inventory to a competitor,Mom's Appliance Warehouse Inc. ,for $100 000.He then carried on business from the premises devoted solely to selling compact discs,records,and DVDs.This business operation was greatly diminished from the previous appliance operation.The creditors of Bo in relation to the appliance business are unpaid and just now discover,two months after the sale to Mom's Appliance,that Bo is no longer in the appliance business.What remedies,if any,do Bo's Appliance's creditors have?

What conditions must be satisfied by the seller of unpaid goods in order to repossess them from a bankrupt business?

In bankruptcy proceedings,the term "settlements" refers to

What is a "vulture fund"? What role can a vulture fund play in helping creditors who are involved in bankruptcy proceedings?

For five years,Maxine had been regularly receiving the same bill for $850 from Credit Landscaping.She didn't think she should pay it because they botched up the landscaping around her house.However,now,after these five years,she sends them a $425 cheque with a note saying,"Take this-it's all you're going to get." This move by Maxine will

Use the fact situation in Q2 to answer the related question that follows. Assume that the company was located in Ontario.In order to recover the assets of General Widgets that George transferred to the new company,the trustee in bankruptcy would

Use the fact situation in Q2 to answer the related question that follows. Given the bankruptcy of General Widgets,the payment to the company's largest supplier is probably

The Superintendent of Bankruptcy has the power to

Where an insolvent person transfers land which he owns to his spouse at one-third of its fair market value within 12 months of his bankruptcy,his spouse may be required to pay the difference gained to the trustee in bankruptcy.

Use the fact situation in Q2 to answer the related question that follows. In light of the bankruptcy of General Widgets,the payment of George's shareholders loan is probably

Regarding bankruptcy,what does it mean not to be dealing at "arm's length" with another party? When might this occur?