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Cheney purchased a small business from LTV for $350,000. To pay for the purchase he borrowed $275,000 from the Royal Bank. He expected the business

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Cheney purchased a small business from LTV for $350,000. To pay for the purchase he borrowed $275,000 from the Royal Bank. He expected the business to do very well and made various purchases by charging them to his credit card. Very quickly, he built a $30,000 credit card debt. He soon maxed out his credit card, but still wanted to purchase a few more additional items for his home, so used his Line of Credit to do so. Very quickly, the debt on his Line of Credit grew to $20,000. His 2018 Honda Civic started to give him problems, so rather than repair the car he decided to purchase a new Tesla. He financed this purchase with a $60,000 loan from ABC Auto Financing. Before the end of the year, business started to go badly and he was earning very little revenue. He had trouble making payments to his creditors. To deal with this cash flow issue, he paid his mortgage regularly, but only made sporadic payments to the auto financing company and on his Line of Credit and credit card debt. This did not solve his money problems and feared that he would soon go bankrupt. To minimize his losses, he sold his car for cash and put half of the money in a bank which is located in another province and the other half he transferred to his wife. A few days later, he bought 2 one way tickets to Fiji and made plans to move there. His creditors immediately attempt to petition him into Bankruptcy. Which of the following is true? a. As he has not voluntary assigned himself into bankruptcy, his creditors will have to wait for him to voluntarily pay his debts. b. He is legally married. As such, he can transfer whatever he wants to his wife without issue. c. He has committed some Acts of Bankruptcy, but not enough to be petitioned into Bankruptcy. d. As he owes more than $1000 and has committed an Act of Bankruptcy within the last 6 months, he may be petitioned into Bankruptcy. e. Both A & C None of the above

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