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) Corporations that go into receivership may not be involved in bankruptcy; the receivership may be based on contract.
D) The commission of a bankruptcy offence could prevent a bankrupt debtor from being discharged.
E) Any assets obtained by a discharged bankrupt can still be claimed by former unsecured creditors who placed the former bankrupt into bankruptcy.

Question

Quizplus · Accepted Answer

E is false because once a bankrupt is discharged, their new assets (acquired after the discharge) are typically not available to former unsecured creditors for claims related to the debts discharged in the bankruptcy. The discharge effectively releases the bankrupt from the legal obligation to repay the debts that were included in the bankruptcy.

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