Management and Organizational Studies 2275A/B Study Guide - Unfair Preference, Secured Creditor, Personal Bankruptcy

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Henry Meredith

Document Summary

After studying this chapter, you should have an understanding of: the legal aspects of business failure the rights and obligations of debtors and creditors when a business fails the stages in the bankruptcy process. The provisions of the bankruptcy and insolvency act and related legislation are complex and arise generally under circumstances of great business and personal turmoil. The role of skilled experts with ethical obligations is critical to the fair distribution of assets. Even with the best of motives debtors may treat the rights of creditors as arbitrary and unfair manner. The provisions of the act provide for certainty and equity. The key feature of the law providing for business failure is that the owners of the business have two alternatives: they can have the business continue in a reorganized fashion, or they can bring it to an end.