To obtain a receiving order, creditors must prove the debtor has committed an act of bankruptcy. Which of the following is NOT such an act?
A) default in a proposal that the debtor had previously persuaded the creditors to accept
B) attempting to hide behind the corporate veil
C) written admission by the debtor that he is unable to pay his debts
D) an attempt by the debtor to remove or hide any of his property
E) an assignment of assets to a trustee in bankruptcy

Question

Quizplus · Accepted Answer

Attempting to hide behind the corporate veil is not considered an act of bankruptcy. The corporate veil refers to the legal distinction between the corporation and its shareholders, and attempting to hide behind it does not constitute an act of bankruptcy.

To Obtain a Receiving Order, Creditors Must Prove the Debtor