Danny is thinking of bankruptcy for his business but so far has not made an assignment nor is the business subject to a receiving order. Yet, because Danny meets all the requirements of bankruptcy, the Bankruptcy and Insolvency Act refers to Daniel as
A) an applicant for bankruptcy.
B) a candidate for bankruptcy.
C) an insolvent person.
D) being bankrupt.
E) a consumer debtor.

Question

Quizplus · Accepted Answer

According to the Bankruptcy and Insolvency Act, someone who meets all the requirements of bankruptcy is referred to as an "insolvent person." This terminology is used even if the person has not yet made an assignment or is not subject to a receiving order. Therefore, Choice C is the correct answer. Choices A, B, D and E are not correct because they do not accurately reflect the terminology used in the Act.

Danny Is Thinking of Bankruptcy for His Business but So