Exam 29: Creditors Rights

You are a duly licensed and appointed trustee to handle the Markin Brothers bankruptcy.You have taken possession of both personal and business assets of Sam and Joe Markin.You have retrieved all the books and documents relating to their affairs.You also have the authority to do each of the following EXCEPT

Under the Bankruptcy and Insolvency Act,the claims of unpaid employees against the assets of a bankrupt employer rank in priority

Each of the following parties has a right to file a builders' lien EXCEPT the one that

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.

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

Danny is thinking of bankruptcy for his business,but so far he has not made an assignment,nor is the business subject to a receiving order.Yet,because Danny meets all the requirements of bankruptcy,the Bankruptcy and Insolvency Act refers to Danny as

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?

Regarding bankruptcy,public policy would be primarily concerned with

On a bankruptcy,preferred creditors rank in priority before secured creditors.

All creditors are considered to be equal in bankruptcy law.

Robert had gallbladder surgery three years ago.He has had significant pain and discomfort in the surgical area since the date of the surgery.After a recent x-ray was taken,he discovered that the doctor who performed the surgery left a surgical sponge inside him.It was the sponge that was causing his ongoing problems.Briefly identify the limitation principles that apply with respect to any claim brought by Robert and conclude by providing an opinion as to whether his claim would be statute barred.

The limitation period in an action for breach of contract starts over again if the debtor makes a part payment.

What is a fraudulent preference? Give an example of a fraudulent preference.

A builder's lien is available only to creditors who participate directly as workers,or who supply material for use directly in the construction work.

A bulk sale,as defined by provincial statutes,is a sale

In Ontario,on a sale of assets,what normal searches should the buyer conduct?

Brianna,a framing contractor,has a duly registered builders' lien on the property owned by Bowing Development.This lien gives Brianna the right to