Bankruptcy - Corporate Services
Ira Smith Trustee & Receiver Inc. can help you collect your outstanding funds. As your bankruptcy trustee we can either work with your borrower to assign itself into bankruptcy to aid in the realization process or by way of Bankruptcy Application.
What is a bankruptcy application?
Bankruptcy Application is the legal term for an unsecured creditor making application to Bankruptcy Court to petition an individual or company into involuntary bankruptcy.
On what basis will a bankruptcy application be granted?
A bankruptcy application is granted when one or more unsecured creditors who is/are owed at least $1,000 files a court application, formerly called a petition, to force a debtor into bankruptcy. Both the creditor who filed the petition and the debtor make representations in court. The creditor must prove that the debtor has committed one or more acts of bankruptcy within the six months preceding the filing of the application. If the Application is granted, a bankruptcy order will be issued. The bankruptcy trustee, nominated by the creditor, is then given control of the bankrupt's assets.
What are considered acts of bankruptcy?
Acts of bankruptcy include but are not exclusive of a fraudulent transfer of property or bills that have not been paid as they became due.
What happens if a bankruptcy application is granted?
Once the bankruptcy order is issued the debtor is placed into bankruptcy. If the bankrupt is a corporation, the bankruptcy trustee takes control of all its assets. If the bankrupt is an individual, the bankruptcy trustee takes control of all the assets except those that are exempt from seizure. The assets exempt from seizure may vary from province to province.
Starting Over, Starting now we can help to you collect your outstanding funds. Contact Ira Smith Trustee & Receiver Inc. today.