In cases where unpaid goods have been delivered to a debtor, suppliers may draw upon a remedy under the Bankruptcy and Insolvency Act (BIA). The remedy is strictly regulated by s. 81.1 of the BIA, and applies to debtors who are in receivership or bankruptcy. To make use of this remedy, suppliers must heed a number of conditions and time limits.
Functions Of A Licensed Insolvency Trustee
When businesses file for bankruptcy or seek to file a commercial proposal, they cannot proceed through these processes without the help of a Licensed Insolvency Trustee (LIT). During insolvency proceedings, LITs play a very important role in working to resolve the debt and satisfy creditors.
Averting Corporate Bankruptcy Through The CCAA
Some companies that owe $5 million or more may be able to draw on provisions in the Companies' Creditors Arrangement Act to manage their debt while avoiding bankruptcy. The legislation allows such companies to continue operating their businesses while attempting to negotiate financial compromises or alternative repayment arrangements with their creditors.
Debtor Repayment Options: Division I Proposals
If a business is in debt and cannot repay its creditors, it can file a Division I proposal. This proposal is essentially an offer to the creditors, in which the debtor offers to pay a portion of the debt over time without filing for bankruptcy.
Debt Repayment: Bankruptcy Versus Proposals
Where an individual or business owes creditors money, but does not have the ability to repay debts on time as they become due, the debtor is facing insolvency. The business may draw on two possible options for dealing with the debt: bankruptcy or a creditor proposal.
Fired Executives - Are you entitled to severance, termination notice or both?
When it comes to employment termination, the words "notice" and "severance" are often thrown together interchangeably. Yet, they're not the same thing. Even executives and senior-level employees are not always sure whether the exit package their employers offer is a fair one.
