Bankruptcy Lecture Notes Review

These flashcards cover key terminology and concepts related to bankruptcy law as discussed in the lecture notes.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.

Involuntary Bankruptcy

A type of bankruptcy initiated by creditors against a debtor who has not filed voluntarily.

Voluntary Bankruptcy

A bankruptcy filed by a debtor willingly, indicating their inability to repay debts.

Debtor

An individual or entity that owes money to creditors.

Creditor

An individual or institution to whom money is owed by a debtor.

Discharge in Bankruptcy

The legal release of a debtor from the obligation to repay certain debts.

Secured Creditor

A creditor that has a legal claim on collateral pledged by the debtor to secure a debt.

Unsecured Creditor

A creditor that does not have a lien on assets of the debtor, relying solely on the debtor's promise to pay.

Preferences (in bankruptcy context)

Transactions made by a debtor that favor one creditor over others shortly before bankruptcy.

Transfers at Undervalue

Transactions where an asset is transferred for significantly less than its fair market value, potentially to the detriment of creditors.

Surplus Income

Income that exceeds a threshold amount, which must be contributed to the bankrupt's estate for distribution to creditors.

Scheme of Distribution

The orderly allocation of funds recovered from a bankrupt’s estate to creditors based on their claims.

Non-Dischargeable Claims

Certain debts that cannot be eliminated through bankruptcy, such as child support or certain government loans.

CCAA (Companies' Creditors Arrangement Act)

A Canadian law that allows companies to restructure their debts under court supervision.

BIA (Bankruptcy and Insolvency Act)

Federal statute in Canada governing bankruptcy and insolvency.

Critical Supplier

A supplier deemed essential to the ongoing operations of a debtor, whose goods or services must be supplied even in bankruptcy.

Stay of Proceedings

A court order that temporarily halts legal proceedings against a debtor.