Duncan Corp. is declared bankrupt. The Royal Bank has a mortgage on its manufacturing plant. Employees have a claim for $1,000 each for unpaid wages. The trustee in bankruptcy's fees are $10,000. An unpaid supplier of steel has a claim for products supplied. Which of the above is a preferred creditor under the BIA?

Question

Quizplus · Accepted Answer

Under the Bankruptcy and Insolvency Act (BIA) in Canada, preferred creditors include employees for unpaid wages up to a certain limit and the trustee in bankruptcy for their fees.