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").
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.
Creditors are often frustrated to find that their debtors don't have assets or other means to pay their debts. Even more frustrating is when creditors discover that their debtors did have assets, which have recently been disposed of.
In a recent case out of the BC Supreme Court, BuildDirect.com Technologies Inc. (Re.) 2018 BCSC 210, the Court was asked to award full indemnity costs to the monitor, the senior lenders and the interim lenders against a party who had been unsuccessful in an application in CCAA proceedings.