1

What happens if a Notice of Intention to make a proposal isrejected?

a) the Trustee in Bankruptcy must seeka settlement with creditors.

b) the court must hold a bankruptcy hearing

c) the insolvent person is automatically declared bankrupt

d) the insolvent person can present a new Notice of Intention on the basis of new information

2

Which of the following is allowed for by the Bankruptcy &Insolvency Act (BIA)?

a) Involuntary bankruptcy can never be avoided unless seventy percent of the creditors are in agreement.

b) Involuntary bankruptcy can never be avoided unless all creditors are in agreement.

c) A debtor may avoid involuntary bankruptcy by asserting that the business is a viable one.

d) The majority of creditors can vote in favour of a proposal to keep the business alive and overrule the objections other creditors might have to doing so.

3

You do not trust your partners and are concerned about liabilities you may incur if you continue to associate with them in business.To ensure that you are safe from any future liability toward third parties that did business with the partnership while you were a partner, you should:

a) retire and place a legal notice in the official provincial government publication

b) sell your partnership interest to someone else.

c) get your partners to sign an acknowledgement that you will not be responsible towards third parties that have a claim against the partnership

d) retire and send a notice to all third parties who did business with the partnership