With Regard to Bankruptcy and Debt Collection, Which of the Following

question 32

Multiple Choice

With regard to bankruptcy and debt collection, which of the following is false?

• A) The Bankruptcy and Insolvency Act provides for a procedure for an insolvent debtor to make a proposal to his creditors that may or may not result in bankruptcy for the debtor.
• B) Both fraudulent conveyance and fraudulent preferences acts attempt to prohibit the debtor from delaying, hindering, or defrauding the creditor.
• C) Any assets obtained by a discharged bankrupt can still be claimed by former creditors who placed the former bankrupt into bankruptcy.
• D) The commission of a bankruptcy offence could prevent a bankrupt debtor from being discharged.
• E) Corporations that go into receivership may not be involved in bankruptcy; the receivership may be based on contract.

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Definitions:

Natural Resources

Environmental assets such as minerals, woodlands, bodies of water, and cultivable land, available in nature and exploitable for economic growth.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and stock exchanges.

Capital Infrastructure

Fundamental facilities and systems serving a country, city, or area, including transportation, communications, sewage, water, and electric systems, that are necessary for economic activity.

Primary Products

Basic commodities that are used as inputs by other industries for production processes, including agricultural products, minerals, and raw materials.