LAW 603 Study Guide - Bankruptcy, Secured Creditor, Official Receiver
16 Apr 2014
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Chapter 24 dealing with bankruptcy & insolvency: one procedure 4 dealing w. bus failure is bankruptcy. $, which is liquid & can be distributed to the bankrupt"s creditors. Once distribution has occurred, law prohibits new claims 4m being launched against the bankrupt 4 any pre-existing debt. Eventually a debtor may be either discharged or in case of corp, its existence terminated. Discharge release of a debtor 4m bankruptcy status. After discharge, debtor is free of all of their pre- bankruptcy debt, to certain limited expectation: one goal of this procedure is to provide 4 orderly & predictable distribution of the debtor"s assets amongst their creditors. Another is to provide debtors who r indiv w. a fresh start through their discharge 4m bankruptcy. One way the risk of bus activity r mitigated 4 entrepreneurs. Corporate & consumer bankrupts will usually find it difficult to re- establish their credit.
