Ratner's Service Centre encountered financial setbacks over a period of time,and eventually found itself insolvent.Among its creditors were the first and second mortgagees of the land and building which Ratner's owned,trade creditors,employees who had not been paid wages,and the municipality,for arrears of property taxes.Ratner's decides not to make a proposal to its creditors.Ratner's Service Centre must have committed an act of bankruptcy within the preceding six months,and owe its creditors at least $1,000 before the creditors may take bankruptcy proceedings against it.

Question

Quizplus · Accepted Answer

According to the Bankruptcy and Insolvency Act of Canada, a debtor must commit an act of bankruptcy within the preceding six months and owe at least $1,000 to its creditors before they may take bankruptcy proceedings against it. In this scenario, Ratner's Service Centre is insolvent and owes money to its creditors, including the municipality, employees, and trade creditors. Therefore, the creditors can take bankruptcy proceedings against the company if it does not make arrangements to pay its debts or make a proposal to its creditors.

Ratner's Service Centre Encountered Financial Setbacks Over a Period of Time,and