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June 2018 Archives

Limitation periods, proposals and bankruptcies

On its appointment a trustee in bankruptcy may have the right to initiate various claims on behalf of the estate. Those claims include claims that the bankrupt may have had the right to initiate prior to the bankruptcy, as well as new claims that are unique to the trustee; for example, statutory claims under section 95 (preference claims) or section 96 (claims for transactions at under value) of the Bankruptcy and Insolvency Act (the "BIA").

Defective security agreement found to be enforceable as against bankrupt

The common law provinces each have legislation dealing with the registration of security agreements against personal property. These acts, each of which are named the Personal Property Security Act ("PPSA"), provide a complex but complete code for registering security interests against property, and for determining the priority between various creditors' claims to that property. Proper security can protect a creditor's rights when a debtor goes bankrupt.

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