LAW 603 Lecture Notes - Lecture 6: Affidavit, Secured Creditor, Canadian Business

• School: Ryerson University
• Department: Law and Business
• Course: LAW 603
• Professor: Clara Chapdelaine- Feliciati

Document Summary

Chapter 24 dealing with bankruptcy and insolvency. More than 80% of small businesses in canada fail during the first 5 years of operation. Bankruptcy egi(cid:373)e: offe(cid:396)s p(cid:396)edi(cid:272)ta(cid:271)le dist(cid:396)i(cid:271)utio(cid:374) of de(cid:271)to(cid:396)(cid:859)s assets to (cid:272)(cid:396)edito(cid:396)s. Serious issue: monetary and non-monetary costs for creditors, debtors, courts, and society. A person is insolvent when their debts exceed their assets, or they cannot meet their liabilities as they come due. A person becomes bankrupt: by assigning themselves into bankruptcy or as a result of a creditor applying to a court for a bankruptcy order against them. Stay: upon bankruptcy, all legal proceedings against a debtor are subject to a stay, i. e. they are suspended and superseded by the bankruptcy proceedings. A suspension of legal proceedings against a debtor. Liquidation: the sale of the de(cid:271)to(cid:396)(cid:859)s assets i(cid:374) (cid:396)etu(cid:396)(cid:374) fo(cid:396) (cid:373)o(cid:374)e(cid:455), (cid:449)hi(cid:272)h is (cid:858)li(cid:395)uid(cid:859) a(cid:374)d (cid:272)a(cid:374) (cid:271)e dist(cid:396)i(cid:271)uted to the (cid:271)a(cid:374)k(cid:396)upt(cid:859)s (cid:272)(cid:396)edito(cid:396)s.