All Flashcards
(218 cards)
1
Q
In what circumstances can a trustee NOT act?
except with permission of the court
s.13.3(1)
A
- The trustee was a director or officer of the debtor in the last 2 years.
- The trustee was an employer or employee of the debtor or director in the last 2 years.
- The trustee was related to the debtor or director in the last 2 years.
- The trustee was the auditor, accountant, legal counsel, or a partner or employee of the auditor, accountant, or legal counsel in the last 2 years.
- Where the trustee holds Power of Attorney or holder of trust for the debtor or anyone related to the debtor.
- Where the trustee is related to the Power of Attorney or holder of trust.
2
Q
Define “Related Person” as it means in the BIA.
s.4(2)
A
- Individuals related by blood, marriage, common-law, or adoption.
- An entitiy and:
- a person who controls the entity, if 1 person
- a person who is a member of a related group that controls the entity. - 2 entities:
- cotrolled by the same person or group of persons
- each of which is controlled by 1 person who controls one of the entities is related to the person who controls the other entity.
3
Q
When may a trustee act, but must disclose on the EIS?
s.13.3(2)
A
No Trustee Shall act as trustee in relation to the estate of a debtor where the trustee is already
a. the trustee in the bankruptcy of, or in a proposal concerning, any person related to the debtor, or
b. the receiver, within the meaning of subsection 243(2), or the liquidator of the property of any person related to the debtor,
without making, at the time of being appointed as trustee in relation to the estate of the debtor and at the first meeting of creditors, full disclosure of that fact and of the potential conflict of interest.
4
Q
Which companies does the Sarbanes-Oxley Act of 2002 (SOX) apply to?
Core Knowledge pg.225
A
SOX is the US law that applies to all public companies with securites (shares, bonds, notes, debentures, etc) registered in the US.
5
Q
What does the Sarbanes-Oxley Act of 2002 (SOX) prohibit?
Core Knowledge pg.225
A
SOX provides guidance on the issue of auditor independence.
Where the trustee firm provides audit services of Securities and Exchange Commission registered entities, impacts the following services:
- bookkeeping or other services related to the accounting records or financial statements of the audit client;
- design and implementation of financial information systems;
- appraisal or valuation services;
- actuarial services;
- internal audit outsourcing;
- any management function;
- broker, dealer, investment advisor or investment banking;
- legal or other expert services; or
- any other services determined by the board to be barred.
6
Q
What are the 3 basic principles of the Sarbanes-Oxley Act of 2002?
Core Knowledge pg.226
A
- An auditor cannot audit her own work.
- An auditor cannot function in the role of management; and,
- An auditor cannot serve in an advocacy role for her client.
7
Q
Who can file a CCAA?
Core Knowledge pg 217
A
- A debtor company or affiliated companies
- Total claims are exceeding $5 Million
- Threshold debt claim of $1,000
- The company must be by admission, insolvent, be bankrupt, or committed an act of bankruptcy.
8
Q
The BIA definition of “corporation” excludes which companies?
Core Knowledge pg.27
A
- Incorporated banks to which the Bank Act applies
- Savings banks
- Insurance companies
- Loan companies
- Railway companies
9
Q
For what reason would the court refuse to grant a bankruptcy order?
Core Knowledge pg.34
A
- Not satisified with the proof of facts alleged in the application.
- Not satisfied with the service of the application.
- satisfied bythe debtor that they are able to pay their debts; or
- Satisfied that no order should be made for other sufficient cause.
10
Q
What must a debtor file in court if they intend to dispute an application for a bankruptcy order?
Core Knowledge pg.35
A
- A notice setting out the statements in the application that they intend to dispute
- The grounds of their dispute
- Their address for service
- The debtor must also serve the applicant creditor with a copy of the notice at least 2 full days before the hearing.
11
Q
What reasons may a creditor use for application for a Bankruptcy Order?
Core Knowledge pg.35
A
- To allow a trustee to review preferences and fraudulent transactions, when rights of action may be statute-barred.
- To prevent squandering or disipation of assets & to secured an equitable distribution of the debtor’s property.
- To ascertain the amount of losses for insurance and other reasons.
- To permit creditors to avail themselves of the provisions of the BIA that may enhance their positions by giving them certain priorities.
12
Q
Describe “Security for Costs” in an application for a Bankruptcy Order.
Core Knowledge pg.36
A
- An applicant creditor who resides outside Canada may be ordered to secure the costs of the application.
- Proceedings may be Stayed until security (funding) is provided
- If a Bankruptcy Order is made, the costs will be taxed & paid from the bankruptcy estate, unless there are insufficient funds to pay the trustee’s fees & disbursements.
13
Q
How does a person become bankrupt?
Core Knowledge pg?
A
- By Bankruptcy Order made by the court under petition of creditor(s).
- By Assignment onf an insolvent person who is:
a. not a bankrupt
b. resides, carries on business, or has assets in Canada
c. has liabilities that exceed $1,000
d. is either unable to meet their obligations as they become due, has ceased paying their current obligations, or their liabilities exceed the value of their assets. - Rejection of a Div I proposal
- Annulment of a Div II proposal that was made by a bankrupt
- After an NOI expires without filing a proposal.
14
Q
What is required of the LIT when they are acting both as Trustee in a bankruptcy estate, and as agent or Receiver for a secured creditor?
Core Knowledge pg. 45
A
- Maintain a written record of the capacity & terms under which they operate on behalf of the secured creditor.
- Obtain an independent legal opinion confirming the validity & enforceability of the security instrument. Provide a copy of that legal opinion to the OSB within 2 days, upon request.
- Maintain adequate accounting records to segregate costs & activities.
15
Q
Which assets are exempt from seizure in bankruptcy?
Core Knowledge pg.47
A
- property held in trust for others
- property that is exempt under provincial law in the province where the bankrupt resides AND the property is situated.
- GST payments that are not required for payment of Trustee’s fees.
- Certain prescribed payments relating to the essential needs of an individual
- RRSP, RRIF, RDSP contributions, except those made in the 12 months before bankruptcy.
- assets that are exempt from seizure by provincial legislation in the province where the debtor resides and the asset is located
16
Q
What is the purpose of accquiring & inspecting the bankrupt’s books & records?
Core Knowledge pg.49
A
To Identify:
- undisclosed assets
- undisclosed liabilities, including deemed trust claims
- existence of unpaid goods delivered within 30 days of bankruptcy
- settlements or preferences
- payments of dividends or share redemptions when the debtor was insolvent
- other reviewable transactions that would result in further investigation
17
Q
Prior to a First Meeting of Creditors, if necessary to protect the interests of the estate, the trustee can:
Core Knowledge pg.49
A
- Take conservatory measures and summarily dispose of property that is perishable or likely to decline in value rapidly.
- Carry on the business of the bankrupt until the FMC.
- Obtain legal advice & institute court proceedings for the recovery or protection of the property of the bankrupt.
18
Q
Which initiatives help to co-ordinate international insolvencies and increase cross-border co-operation?
Core Knowledge pg.512
A
- The European Union Regulation on Insolvency Proceedings 2000
- The Model Law on Cross-Border Insolvency developed by the United Nations Commission on International Trade Law (UNCITRAL)
- UNCITRAL’s Practice Guide on Cross Border Insolvency Co-operation
- UNCITRAL’s Legislative Guide on Insolvency Law, Part 3: Treatment of Enterprise Groups in Insolvency
- The EU Regulation came into force on May 31 2002 & is applicable throughout the EU
19
Q
What circumstances may cause cross-border issues to arise?
Core Knowledge pg.511
A
- An entity has affiliates in other countries and the transactions between the affiliates are highly interdependent.
- An entity has assets and/or operations in other countries.
- Creditors are located in foreign jurisdictions.
20
Q
How does UNCITRAL’s Model Law promote international co-operation in trans-border insolvency?
Core Knowledge pg.512
A
- By setting a framework for the courts to co-ordinate & co-operate with each other
- By limiting the scope of local bankruptcy proceedings when foreign proceedings have commenced
- By ggranting local relief to foreign representation
21
Q
Summarize the key points of Directive 1R8: Counselling in Insolvency Matters
Directives & Circulars
A
- Guidance on BIA paragraphs 5(4)(b)&(c), and s157.1, and para 66.13(2)(b)
- The LIT is required to provide, or provide for counselling by the LIT or a registered Insolvency Counsellor
- A person is ineligible to be registered against an LIT license if they are a referral agent or involved with lending services like credit rebuilding or “proposal insurance.”
- Counselling shall be provided in-person, but can be provided by phone or video if chosen by a fully informed debtor.
- 1st session between days 10 and 90; 2nd session at least 30 days after 1st. If a Div I proposal is rejected, the 1st counselling must be compleeted within 10 days of FMC.
- Must include advice on: budgeting, acheiving financial goals, spending habits, responsible use of credit.
- Registration must be renewed each year & must prove 3.5 hours pro-D every 2 years.
22
Q
Summarize the key points of Directive 2R: Joint Filing
Directives & Circulars
A
- Related BIA Sections: 66.12(1.1) & 155(f)
- Summary admin or CP files may be dealt with as one file if the files are substantially the same & the LIT is of the opinion that it is in the best interest of the debtors and creditors.
- Trustee’s remunerations & counselling fees are the same as if it were the filing of one individual.
- If bankrupt & converted to OA, estates will be split.
23
Q
Summarize the key points of Directive 3: Duties of the Bankrupt to Deliver Credit Cards to the Trustee
Directives & Circulars
A
Related Sections: 5(4)(b)&(c), 158(9.1)
- In all circumstances, a bankrupt is required to deliver all credit cards, even if there is no balance outstanding.
- They are not required to deliver a credit card authorized to them by another borrower, but it must be noted in the Trustee’s file.
- Does not apply to consumer debtors that are under proposals.
24
Q
Summarize the key points of Directive 4R: Delegation of Tasks
Directives & Circulars
A
- The Trustee remains responsible for ensuring that the administration is conducted in a professional & timely manner.
- Cannot delegate: accepting appointment, chairing CM for Div I/OA files, and in Div II or SA files where creditor or OR requests the LIT to Chair.
- Cannot delegate: Chairing Inspectors’ Meetings, when requested.
Cannot delegate: signing cheques
Cannot delegate: signing Forms 7, 9, 10, 12, 13, 14, 16, 29, 34, 38, 40, 43.1, 46, 48, 51, 53, 54, 54.2, 77, 82, 83, 84 - Must ensure for adequate training & internal controls
25
Summarize the key points of Directive 5R7: Estate Funds & Banking
## Footnote
Directives & Circulars
Related Sections: 6(2),(3),(4), 14.01, 25, 26, 27, 66.26, 155(g)
Related Rules: 65, 67, 101, 103, 128, 129
- Must maintain up to date GL, duplicate deposit slips, & receipts.
- Reconciliations must be done every month, within 45 days of bank stmts.
- Electronic records: shall produce & print a hard copy, and must have a backup stored off-site & updated daily.
- an LIT shall protect estate trust funds, ensure payments are numbered consequtively, not pay personal or office expenses from a trust account, allocate interest into the estate.
- NSF fees can be charged to the client, deposited to the trust account, then recover bank to the trustee's general account.
- pre-filing deposits must be held in a separate trust account.
26
What is the tariff for trustee's fees in a Summary Admin bankruptcy?
## Footnote
General Rules #128
* Capped @ $15,000 total estate receipts
a. 100% of the first $975
b. 35% of the next $1,025
c. 50% of the portion of receipts that exceed $2,000
27
List Pervasive Qualities and Skills from the Competency Profile
## Footnote
Competency Profile
A. Ethical Behavious and Professionalism
B. Personal Attributes
C. Professional Skills
28
List the Specific Competencies from the Competency Profile
## Footnote
Competency Profile
D. Insolvency Philosophy and Practice
E. Insolvency Law and Practice
F. Tax Considerations
G. General Business Law
H. Financing
I. Managing Business Operations
J. Financial Analysis and Reporting
29
What is a Property Claim?
## Footnote
s.81
A type of claim where a creditor or person claims they are the owner of property in the possession of the bankrupt.
30
What steps must be taken for a property claim?
## Footnote
s.81
1. Creditor shall file a POC verified by affadivt giving grounds for their claims & sufficient proof to ID the property.
2. Trustee shall within 15 days either admit the claim & deliver the possessions, or notify the claimant that claim is disputed.
3. Claimant can file appeal to court within 15 days.
31
Can creditors examine the claims of other creditors?
## Footnote
s.126(1)
Yes, every creditor who has filed a proof of claim is entitled to see and examine the proofs of other creditors.
32
What are a supplier's right to recover merchandise delivered to an insolvent person?
## Footnote
s.81.1
A supplier can demand return of merchandise that was delivered in the 30 days prior to the date of bankruptcy or receivership. They are allowed 15 days after the date of insolvency to make their demand to the trustee.
The court, trustee, or receiver may extend this 15 days period.
33
Summarize the main points of Competency A: Ethical Behaviours and Professionalism
## Footnote
Competency Profile
1. Recognizes threats to the integrity of the insolvency system.
2. Identifies the significant stakeholders affected or involved in an engagement & understands the relationships, needs, and particular interests.
3. Recognizes (and resists) impediments to acting honestly and with integrity
4. Maintains objectivity and independence
5. Manages personal/file information
34
Summarize the main points of Competency B: Personal Attributes
## Footnote
Competency Profile
1. Able to self-manage
2. demonstrates leadership & initiative
3. Maintains and demonstrates competence and recognizes limits
4. Strives to add value in an innovatice manner
5. treats others in a professional manner
6. Demonstrates a high degree of responsibility and accountability for the work undertaken in a professional capacity
7. Approaches information with professional scepticism
8. Demonstrates an interest in and seeks continuous improvement
35
Summarize the main points of Competency C: Professional Skills
## Footnote
Competency Profile
1. Makes decisions based on the best available information
2. Gathers and researches information and develops ideas based on constraints (time, financial, etc.)
3. solves problems by examining and interpreting information and ideas critically
4. Identifies and manages risks for the insolvency professional and on behald of stakeholders
5. Manages and supervises engagement/files
6. Recognizes own limitations, both personally and professionally
7. Communicates effectively and efficiently, both orally and in written format
8. Applies effective negotiating skills - demonstrates an ability to understand the objectives and desires of each of the stakeholders in a negotiation to facilitate a resolution.
9. Manages change - Identifies and explains the importance of change management in the context of an insolvency or restructuring engagement, applies change management principals in dealing with an insolvency mandate.
36
Summarize the main points of Competency D: Insolvency Philosophy and Practice
## Footnote
Competency Profile
1. Identifies, explains and applies the objectives of insolvency policy in Canada.
2. Identifies and appropriately addresses cross-border issues
3. Identifies and explains the role of the judiciary and the judicial process in Canada, in insolvency matters; Identifies the situations outlines below, understands his/her role with respect to the Court, assumes the correct role and applies the correct process in those situations.
4. Identifies and appropriately refers matters for investigations to the relevant parties.
37
Summarize the main points of Competency E: Insolvency law and Practice
## Footnote
Competency Profile
1. Identifies and explains the roles, responsibilities, and interrelationships of administrative officials and interested parties in insolvency proceedings.
2. Understands the role of the Trustee in each of the appointments identified in the legislation.
3. Demonstrates an understanding of the insolvency process in each of the engagements identified below, identifies and recommends appropriate courses of action. Considers decision criteria, Stay of Proceedings, creditor meeting/voting issues, legal requirements/impediments/limitations of appointment, operating issues, authorities to act.
4. Recognizes priority claims and correctly assesses the impact such as claims might have on the planned course of action
5. Demonstrates an understanding of assessment, admission, disallowance and resolution of claims.
6. Correctly applies the rules of voting.
7. Administers all aspects of the insolvency or restructuring appointment.
8. Assesses the impact of insolvency legislation on various types of agreements: develops a strategy to deal with those agreements and recommends a course of action.
9. Conduct independent business reviews and monitoring engagements.
10. Administers all aspects of a restructuring mandate - assesses the relative advantages and disadvantages of various types of proceedings, develops an overall strategy for a mandate, recommends a course of action and manages the process throughout the proceedings.
11. Assesses and applies the relevant aspects of employment law to the insolvency mandates.
12. Identifies specialized aspects of an insolvency mandate; and recommend a course of action.
13. Understands the specialized rules and processes that apply.
14. Identifies, investigates, makes recommendations, develops and implements a strategy regarding the pre-commencement transactions or the conduct of a bankrupt, insolvent person or other participants.
15. Identifies, investigates, develops and implements a course of action related to reviewable, suspect or voidable transactions.
16. Determines and applies the rules relevant to the setting, approval and payment or securing of the remuneration of insolvency professionals, solicitors, inspectors and others receiving a remuneration from an insolvency estate.
17. Applies the statutes and programs relevant to the setting, particular insolvency circumstances of an individual.
18. Identifies and applies the rules and processes relating to the discharge of debts.
19. Identifies and applies the administrative steps required to complete the administration of a mandate.
38
Summarize the main points of Competency F: Tax Considerations
## Footnote
Competency Profile
1. Identifies and explains the interrelation of taxation and insolvency practice, and applies the relevant aspects of tax laws to the insolvency mandates whether assets or liabilities.
2. In a corporate file, performs the following: Advise directors & officers of their potential liability, registers and/or files the returns, advises D&O of their obligations to file returns, identifies when it is appropriate for an audit to occur, registers GST/HST/source deductions as a Receiver/Trustee as required, correctly applies Debt Forgiveness Rules, responds appropriately analyzes the impact of tax debts and responds.
3. In a personal bankruptcy file, understands requirements of filing returns in personal bankruptcy estates.
4. Understands and applies rules relating to debt forgiveness as they relate to the income tax amounts and tax profile of an insolvent person as well as other deductions, credits or other issues that may apply in an insolvency situation.
39
Summarize the main points of Competency G: General Business Law
## Footnote
Competency Profile
1. Recognize the destinctions between: proprietorship, partnership, limited partnership, corporations, directors' roles and responsibilities, shareholders rights/obligations. Identifies, explains and applies the concepts of directors' liabilities for unpaid wages, remuneration, unremitted pension contributions.
2. Recognizes which insolvency process(es) are available to which debtor(s) (corporate or natural person).
3. Demonstrates a basic understanding of Contract Law.
4. Understands and properly applies elements of a trustL settlor, beneficiaries, certainty of trust language, trust property.
5. Identifies, explains and applies the concept of property, ownership, title, partition of title, understands property equalization vs. property ownership.
6. In the context of environmental matters: recognizes situations, where a risk to the environment, to workers, to neighbouring communities may be present and take appropriate action to limit environmental liability, exposure or risk.
7. Identifies and explains the interaction and rights of various levels of government in environmental matters: federal, provincial, municipal and regulatory agencies.
8. Obtains information, develops and implements a strategy to deal with an environmental or health or safety concerns - research of info, site assessment, site remediation, site abandonment, etc.
9. Identifies and explains the recourses available to insolvency professionals under insolvency laws, where remediation is ordered.
10. Identifies and explains the extent and limitations of the indemnities available to protect an insolvency professional under insolvency laws, develops a strategy to limit the risk exposure.
11. Identifies and explains the rights of the governmental authorities to a super-prioritiy claim under the BIA and CCAA against certain assets for the remediation costs assumed by the government.
12. In the context of employment law: identifies and explains the rights associated with various types of employment related claims and calculates the amount of the relevant claims - claims for severance, termination, notice or pay in lieu of notice, amounts due under legislation for the protection of workers or due under contractual arrangements or under Common Law obligations, claims for salaries, vacation, expenses, pension plans, etc.
13. Identifies and explains the rights of employees on a change in control or a change in the situation of the employer - changes in working conditions, constructive dismissal, etc.
14. Identifies and explains the obligations arising from a loss of employment.
15. Identifies and explains the responsibilities of the LIT re ROEs and T4s.
16. Identifies and explains the respoonsibilities of the LIT re complying with collective bargaining agreements, dealing with unions, ESDC.
17. Identifies and explains the rights of employees and the obligations of insolvency professionals under WEPPA and calculates the entitlements of employees under the WEPPA.
40
Summarize the main points of Competency H: Financing
## Footnote
Competency Profile
1. Understanding the characteristics of various types of financing such as interest, covenants, normal terms.
2. Public and private sources for capital - Identifies the issues & risks associates with reporting issues and related risks, rewards and costs.
3. Understands, appropriately analyses and plans for management of working capital.
4. Understands the role of (& challenges related to) an industry regulator.
5. Capital Structure - identifies, explains, and interprets the relevance of financial ratios in the context of capitalization, performance assessments, and going concern risk and calculates the relevant financial ratios.
6. In an enforcement situation, recognizes and responds to: Assessment of security, necessity (wisdom) of obtaining legal opinion, quasi-security instruments (leases, conditional sales contracts, consignment).
41
Summarize the main points of Competency I: Managing Business Operations
## Footnote
Competency Profile
1. General business considerations - understands key considerations/challenges faced by all business as well as their impact on the success or failure of a business.
2. Assesses the risks and benefits of whether to operate, liquidate or restructure an insolvent business.
42
Summarize the main points of Competency J: Financial Analysis and Reporting
## Footnote
Competency Profile
1. Performs relevant financial analyses and draws appropriate conclusions.
2. Takes appropriate course of action to assess management.debtor's accounting/information systems; develops strategy to monitor debtor's performance.
3. Forecasting and budgeting - Prepares, reviews and/or comments on financial projections or forecasts; assesses the reasonableness of assumptions; performs sensitivity analysis; develops and analyzes alternatives; assesses risk, formulates strategy.
4. Performance assessment - Develops and implements a monitoring program to assess the performance of the organization as compared to projections.
5. Critiques financial analyses to ensure that the concept of the time value of money is neither missing nor misapplied - Identifies and explains the concept of present value and future value of an investment, obligations or strea, of payments, and calculated a present value and future value of a stream of payments.
43
When are 2 (or more) persons related?
## Footnote
Manifesto pg.21
a. individuals connected by blood, marriage, common-law partnership or adoption
b. an entity and: i. a person who controls the entity. ii. a person who is a member of a related group that controls the entity. iii. any person connected in the above manner
c. 2 entities: i. both controlled by the same person or group. ii. the entities are controlled by different people, but those people are related to each other.
44
What makes a limited partner different than a general partner?
## Footnote
manifesto pg.23
Limited partner AKA "silent partner"
- contributes financially
- occassionally provides advice
- otherwise not invollved in the business
* if limited partner becomes involved with operating the business, will be held just as liable as a general partner.
45
What steps can be taken to mitigate risk for conflict, or perceived conflict of interest?
## Footnote
manifesto pg.25
Build an ethical wall:
- create a circle of trust for the file
- have a secondary signing trustee
- physical distancing with staff
- document the file with steps taken to mitigage the conflict
46
What are the rules regarding confidentiality?
## Footnote
manifesto pg.25
RULE 40: Trustee shall not disclose confidential info to the public unless: i. required by law, or ii. authorized by the person to whom the info relates
RULE 41: Trustee shall not use any confidential info that is gathered in a professional capacity for their personal benefit or to benefit a 3rd party.
CAIRP RULE 6: a member shall not take any action by which he makes improper use of confidential knowledge obtained in the course of a professional engagement.
CAIRP RULE 12: A member shall not disclose any confidential info regarding any professional engagement unless required by law.
47
What factors may lead a lender to seek a consultation/independent business review by an LIT?
## Footnote
manifesto pg.30
- Breach of covenant or close to breach
- significant loses or deterioration of shareholder equity
- Negative trends in financial ratios
- Loss of key management
- Loss of large customer
- Lack of financial information being provided to lender
- Debtor exceeds credit limit
- Increase in aged AR and increase in inventory
- Expiry of current credit facility with lender and initiation of forbearance agreement.
48
What information should be included in the Engagement Documentation?
## Footnote
CAIRP Standards 6.3.2
a. The role of the member
b. Who the member is representing
c. The security agreement or the statutory provisions to which the member is appointed
d. The member's responsibilities under the engagement
e. The scope of work to be performed
f. The remuneration arrangments
g. The expectation re frequency, timing and context of reports
h. Timing of engagement (start date, completion date, period of review)
49
Breakdown the acronym:
SIRRCL
for pre-engagement considerations
## Footnote
manifesto pg.29
Skillset - industry, geography, resource availability (staff)
Indemnity - included in engagement ltr
Risks - operational risks, active/pending litigation creditor relationships
Reputation - personally & parties involved, firm reputation, high media profile
Conflict - actual vs. pervieced conflict of interest.
Liabilities - environmental, unions, trusts, and priorities that would rank ahead of Trustee's fees.
50
What do you review usually in an independent business review?
## Footnote
manifesto pg.30
- company background
- Management: adequacy, remuneration, succession, issues
- Operations: recent results, business plan, industry info, major customers/suppliers, risks, capital asset review
- Analysis of financial forecasts
- Analysis of assets and liabilities
- Lender's security position: calculated based on realization and priorities outstanding.
51
What are the essential components of a forbearance agreement?
## Footnote
manifesto pg.33
- Acknowledgement by the debtor of the indebtedness
- Acknowledgement by the debtor of the validity and enforceability of security (te documents should be attached)
- Acknowledgement by the debtor that they have received a demand for payment
- Obtain consent documents that the creditors may rely upon in the event that the debtor defaults under the terms of the agreement: consent to early enforcement, consent judgement, consent redemption order, consent receivership order
- Outline specific events of default: failure to provide sufficient financial reporting, material adverse change in the debtor's business operations, taking on more debt without the creditors' consent, conveying property without the creditors' consent.
- Outline entitlements of the creditor upon the occurence of an event of default: no further demand for payment will be required, creditor may enforce its legal and equitable rights, entry of the consent docs.
-Forbearance fee
- Release from the debtor
- Acknowledgement of independent legal advice
52
What are the 3 guiding principles when performing an Assessment of an individual debtor?
## Footnote
Directive 6R
1. Debtor's Choice: upholding a standard of informed debtor choice following full disclosure
2. Privacy: Having adequate facilities and equipment to ensure the assessment process respects and maintains the privacy of the debtor
3. No Third Party Influence: only LITs or those delegated by LITs to perform those tasks in paragraph 12 of the Directive, are authorized to perform certain functions
53
What are the key elements to consider when assessing a debtor's financial situation?
| both corporate and consumer debtors
## Footnote
IP3 Module 1.1
- Determine precisely who the debtor is
- Determine what assets/property the debtor owns or has rights in
- Determine the names and amounts owed to each creditor
- Determine what the debtor's revenues and expenses are
- Determine if there are any 3rd parties who might be affected
- If there ahave been any transactions with closely related parties
- If tax returns and other filings are up to date
- If there have been any previous insolvencies
54
Which tasks must be performed by the LIT, and cannot be delegated to a member of staff?
## Footnote
Directive 4R
1. Accepting appointments
2. Chairing meetings of creditors for Div I, OA, and when requested by the OR, in DIv II and SA files.
3. Chairing meetings of inspectors when requested by an inspector.
4. Reviewing and signing cheques drawn on estate accounts.
5. Ensuring that the internal control system is adequate and operational.
6. Reviewing and signing the forms and documents as specified in Schedule A of Directive 4R.
55
What is the role of the LIT in assessing the debtor's situation?
What are the duties of the LIT in assessing the debtor's situation?
## Footnote
IP3 1.2
The Trustee:
- Represents neither the debtor not the creditors
- Administers the provisions of the BIA as they apply to the rights and interests of all parties concerned
- Is subject to affirmation or substitution by the creditors
- Must maintain a high standard of conduct and ethics by complying with the Code of Ethics and CAIRP Standards of Professional Practice
- Must be honest, impartial, and transparent in all dealings and provide full and accurate information
- Must not assist , advise, or encourage any person to engage in any illegal or dishonest behaviour
- Must avoid any engagement that impairs or appears to impair their professional judgement
56
What is the difference between the "date of bankruptcy" and the "date of initial bankruptcy event? What are the implications of each?
## Footnote
IP3 1.3
DATE OF BANKRUPTCY:
- the granting of a bankruptcy order
- the filing of an assignment
- the event that caused an assignment to be filed
DATE OF INITIAL BANKRUPTCY EVENT:
the earliest of:
- an assignment
- a proposal
- an NOI
- the first application for a bankruptcy order
- proceedings under the CCAA
57
How does the Code of Ethics apply to pre-engagement considerations in insovency cases?
## Footnote
IP3 1.2
GR 44 Trustees who are acting with respect to any professional engagement shall avoid any influence, interest or relationship that impairs, or appears in the opinion of an informed person to impair, their professional judgment.
GR 50 Trustees shall not obtain, solicit or conduct any engagement that would discredit their profession or jeopardize the integrity of the bankruptcy and insolvency process.
58
How is the estimated net realizable value of an individual debtor's assets determined?
## Footnote
IP3 1.4
-net realizable value (after costs), the trustee must consider the costs of realization such as
storage, insurance, security, transportation, and disposition costs in order to fairly assess the net recovery to the estate
| (M3.)
59
How is surplus income calcuated for an individual debtor?
## Footnote
IP3 1.5
-verification of income vs OSB STD for the family unit, calculation of the SI using DIR 11R2
-if spouse neglects or refuses to disclose income => OSB STD/ 2
-non- discretionary expenses used to decrease SI (allowed under DIR11R2 - only if payment made
-Form 65 is a baseline for the trustee in determining the SI obligation
-SI is included in property of the debtor, it is not part of the determination of the net realizable value of assets and thus not a determining factor in whether an assignment in bankruptcy would be filed as an ordinary or summary administration
| M1.10/
60
What impact does a surplus income obligation have on a debtor's discharge from bankruptcy?
## Footnote
IP3 1.5
-SI obligation - requirement of payment by the bankrupt to the estate DIR 11R2
-SI determines lenght of bankruptcy proceedings
-SI disagreement - potential mediation BIA S.68, Rule 105
-SI determines material change in the bankrupt’s financial situation
-SI determines if debtor eligible for an automatic discharge
61
When is mediation appropriate in the context of surplus income obligations?
## Footnote
IP3 1.5
-should there be a disagreement between the trustee or the creditors and the bankrupt M1.5
-requirement under Section 170(1) if the bankrupt had a surplus income obligation and refused or neglected to make payments, or if the bankrupt filed an assignment in bankruptcy when they could have filed a viable proposal (Section 173(1)(m) and (n))
-if not resolved by the mediation, the matter is referred to the Court for resolution (Section 68(10), Section 170.1(3))
| M1.5
62
Why is professional skepticism important in determining surplus income obligations?
## Footnote
IP3 1.6
-should inquire as to the debtor’s relationship with their employer
-determine fi any manipulation of the debtor’s reported income (Banking overtime, Debtor is related to employer, Income from self-employment, Part-time work and irregular pay cycles, Tips and gratuities)
-comparison should be made between income reported on the income and expense forms, and other data sources such as T4s and related income tax returns
-provide proof of income and proof of payment for any of the non-discretionary expenses M1.6
| M1.6
63
What options are available to an individual debtor under the BIA?
## Footnote
IP3 1.7
-DIR 6R5 - options available
* Do nothing.
* Engage in a debt-management program.
* File a Proposal (Division I or a Division II).
* Make an assignment in bankruptcy M 1.7
| M1.7
64
What additional information might be required from a debtor to complete an assessment, including prior asset transfers?
## Footnote
IP3 1.8
-inquire into TUV and preferences
-inquire into an potential future lump sums, inheritances, discuss winnings
-
65
What is the fee structure of the various BIA options?
## Footnote
IP3 1.9
-SA- tariff under GR Rule 128 applied as though the realizations were $15,000
First $975 of receipts 975
35% of the Next $1,025 of receipts 359
50% of receipts over $2000 to max of $15,000 6,500 Total=> 7,834
-CP- tariff under GR Rule 129 - calculation
First $1500 of receipts 1,500
20% of amount available for distribution* $X (receipts - 1500- disbursements)
-OR and DIV I
66
How do you assess an individual debtor's situation?
## Footnote
IP3 1.10
-perform financial assessement, determine net income, household net income, non-discretionary expenses, family unit
-net value of assets
-previous insolvencies
-status of filings with CRA
67
What similarities and differences are there in the initial assessment of a corporate file compared to an individual debtor file?
## Footnote
IP3 1.11
Similarities:
- T to gain an understanding of the debtor’s assets, liabilities, and cash flows (incomes and expenses), as well as the nature of the business operations corporate debtor)
- reviewwable transactions, ongoing lawsuits, enviroment issues ( corporate debtor) M1.11
68
What relevant issues and possible outcomes need to be discussed with the debtor?
## Footnote
IP3 1.11
69
How can you perform an initial assessment of a corporate file under 2 different circumstances?
## Footnote
IP3 1.12
I think there are 2 actual cases in this section to compare and I wonder if this card is even relevant? mfk
70
What is the purpose of an independent business review (look-see)?
## Footnote
IP3 1.13
- assessing the situation of the debtor M1.13
- to gather sufficient information for the decision-maker
71
What is the process of an independent business review (look-see)?
## Footnote
IP3 1.13
-T must address the pre-engagement considerations M1.13
- make a plan for the engagement
- -preliminary information required by the LIT for a business review/look-see is normally identical to the required information described in the Assessing the Situation section for an individual debtor
- impacts there would be on third parties such as directors, shareholders, and guarantors.
72
How do you address a material adverse change?
## Footnote
IP3 1.14
-requirement for the trustee to determine the surplus income requirement and advise the Official Receiver and any creditors requesting that information of the calculation M1.5
73
What circumstances are considered to be a "material adverse change?"
## Footnote
IP3 1.14
74
What is the LIT's role in assisting the debtor in choosing an option when the debtor's goals may not be acheivable?
## Footnote
IP3 1.15
- assessing the end game
- to decide to decide whether you will take on the engagement
75
What is a voluntary wind-up?
## Footnote
IP3 1.16
76
What is the WURA, and when is it applicable?
## Footnote
IP3 1.17
77
What types of appointments will invoke a Stay of Proceedings?
| learning objectives
## Footnote
IP3 2.1
* Assignment
* Bankruptcy Order
* Division I proposal
* Division II proposal
* Notice of Intention
* on initial application of a CCAA, if ordered, limited to 10 days
* on any other application in a CCAA, if ordered, without limitations
* in a CCAA for the protection of Directors, if ordered
78
Describe the nature and applications of a Stay of Proceedings
| learning objectives
## Footnote
IP3 2.1
- Invokes an immediate prohibition to the commencement or continuation of any action, execution, or other proceeding for the recovery of a claim provable in bankruptcy against the insolvent person or their property.
- There may be limitiations to the Stay as applicable to property of indigineous people living on First Nation reserve.
79
What documentation is required to support each type of appointment?
| learning objectives
## Footnote
IP3 2.2
I'm going to split this into multiple cards, one for each type of proceeding. mfk
80
What are the various appointment documents issued by the OR and by the courts?
| learning objectives
## Footnote
IP3 2.2
The Official Receiver will issue the Certificate of Filing/Appointment, including bond required and the date, time and location of the FMC (where applicable) in the case of:
* Assignment in bankruptcy
* Bankruptcy Order
* Division I proposal
* Division II proposal
* NOI
The COURT will issue:
- the Bankruptcy Order
- the Receivership Order, in court-appointed receivership
- the Initial Order appointing the LIT as Monitor under the CCAA
81
What is the purpose and what are the conditions of the Bankruptcy Assistance Program (BAP)?
| learning objectives
## Footnote
IP3 2.3
PURPOSE: to permit a debtor who has insufficient funds to cover the cost of an administration of a bankruptcy to have access to the bankruptcy system.
CONDITIONS:
- consult at least 2 trustees, and contact the OSB again if the debtor considers bankruptcy remains a potential solution.
- the debtor will contact the delegated trustee in order to fully discuss the alternatives to bankruptcy and the consequences.
- Excludes individuals who: are incarcerated., are required to make surplus income payments, or who were previously or are currently involvend in commercial activities where the administration of the bankruptcy could give rise to an appreciable amount of administrative or investigative work for the trustee.
- The trustee is required to administer the file in the same manner and capacity as a file that came outside the BAP
- the trustee can request and receive payment for out of pocket expenses, and recover fees in accordance with Rule 128, where there are available funds in the estate after the payment of out-of-pocket expenses.
## Footnote
BIA s.156.1 & Directive 20
82
What documentation is required of each type of corporate insolvency engagement?
| learning objectives
## Footnote
IP3 2.3
83
How can an LIT be appointed as a trustee or administrator in an individual insolvency engagement?
| learning objectives
## Footnote
IP3 2.4
84
What are potential conflicts of interest that may prevent an LIT from accepting an appointment?
| learning objectives
## Footnote
IP3 2.4
85
When must an LIT disclose conflicts of interst to stakeholders?
| learning objectives
## Footnote
IP3 2.4
86
What are the duties of the LIT upon appointment in consumer insolvency engagement?
| learning objectives
## Footnote
IP3 2.4
87
What documentation is required of each type of consumer insolvency engagement?
| learning objective
## Footnote
IP3 2.5
88
What is the purpose of the Monthly Income & Expense Statement (Form 65)/ cash flow statement, and the Statement of Affairs?
| learning objectives
## Footnote
IP3 2.5
89
How should the Monthly Income & Expenses Statement (Form 65)/Cash Flow Statement be completed?
| learning objectives
## Footnote
IP3 2.5
90
What are the documents required for each type of proposal in a consumer insolvency proceeding?
| learning objectives
## Footnote
IP3 2.6
91
What is the role of the OR in the filing of documents for consumer bankruptcies and proposals?
| learning objectives
## Footnote
IP3 2.6
92
What are the applications and limitations of the Stay of Proceedings in consumer and corporate engagements?
| learning objectives
## Footnote
IP3 2.7
93
What documents are required to initiate an LIT's appointment in a corporate bankruptcy for voluntary assignemnts, bankruptcy orders, or deemed assignments?
| learning objectives
## Footnote
IP3 2.8
94
In corporate bankruptcies, which filing documents must be signed by the initiating party, and which must be sent to the OSB or the court?
| learning objectives
## Footnote
IP3 2.8
95
What appointment documentation is required in a corporate NOI and Div I Proposal?
| learning objectives
## Footnote
IP3 2.9
96
What appointment documentation is required in a business review (look-see)?
| learning objectives
## Footnote
IP3 2.10
97
What appointment documentation is required for Interim Receivers, private receivverships, and court-appointed receiverships?
| learning objectives
## Footnote
IP3 2.11
98
What appointment documentation is required for a CCAA Monitor?
| learning objectives
## Footnote
IP3 2.12
99
How does the Stay of Proceedings apply in the context of a CCAA proceeding?
| learning objectives
## Footnote
IP3 2.12
100
What is the destinction between stakeholder reports and notices, and the purpose of each?
| learning objectives
## Footnote
IP3 3.1
101
What types of notices and reports are required in each type of engagement?
| learning objectives
## Footnote
IP3 3.1
102
What are the requirements and processes for identifying all of a debtor's assets?
| learning objectives
## Footnote
IP3 3.2
103
What legislative tools enable a trustee to take possession of estate property?
| learning objectives
## Footnote
IP3 3.3
104
What are the trustee's responsibilities when in possession of estate property?
| learning objectives
## Footnote
IP3 3.3
105
What are the requirements and process for determining the fair market or comercially reasonable value of a debtor's assets?
| learning objectives
## Footnote
IP3 3.3
106
How is a disposition plan developed for dealing with a debtor's assets?
| learning objectives
## Footnote
IP3 3.4
107
How does each required form apply in the administration of a consumer insolvency?
| learning objectives
## Footnote
IP3 3.5
108
What statutory notices are required in consumer insolvency proceedings, and when must they be delivered?
| learning objectives
## Footnote
IP3 3.6
109
What is the process for dealing with assets of a consumer debtor in each type of insolvency proceeding?
| learning objectives
## Footnote
IP3 3.6
110
What are the key similarities between the administration of corporate and consumer insolvencies?
| learning objectives
## Footnote
IP3 3.7
111
What are the key differences between the administration of corporate and consumer insolvencies?
| learning objectives
## Footnote
IP3 3.7
112
What notices are required in a receivership?
| learning objectives
## Footnote
IP3 3.7
113
Wht processes are involved in verifying the existence and ownership of a corpororate debtor's assets?
| learning objectives
## Footnote
IP3 3.8
114
How do asset identification processes differ between consumer and corporate insolvencies?
| learning objectives
## Footnote
IP3 3.8
115
What legislative tools allow a trustee to take possession of a corporate debtor's assets?
| learning objectives
## Footnote
IP3 3.9
116
What are a trustee's responsibilities when securing and insuring a corporate debtor's assets?
| learning objectives
## Footnote
IP3 3.9
117
What administrative processes are used to determine the fair market or commercially reasonable value of a corporate debtor's assets?
| learning objectives
## Footnote
IP3 3.10
118
How is a disposition plan developed for a corporate debtor's assets?
| learning objectives
## Footnote
IP3 3.10
119
What are the unique interim reporting requirements for each type of insolvency proceeding?
| learning objectives
## Footnote
IP3 4.1
I think we maybe need to split this into a separate card for each type of proceeding. mfk
120
For Consumer Proposal (Div II):
- What is an LIT expected to report on?
- When is interim reporting required, and what documentation is needed?
- To whom does the LIT report?
- How do the recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.3
121
For Summary Administration:
- What is an LIT expected to report on?
- When is interim reporting required, and what documentation is needed?
- To whom does the LIT report?
- How do the recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.2
122
For Division I Proposal & NOI:
- What is the LIT expected to report on?
- When is interim reporting required, and what documentation is needed?
- To whom does the LIT report?
- How do the recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.5
123
For Ordinary Administration:
- What is an LIT expected to report on?
- When is interim reporting required, and what documentation is required?
- To whom does the LIT report?
- How do recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.4
124
For Interim Receiver appointment:
- What is an LIT expected to report on?
- When is interim reporting required, and what documentation is required?
- To whom does the LIT report?
- How do the recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.6
125
For Court-appointed receivership:
- What is an LIT expected to report on?
- When is interim reporting required, and what documentation is needed?
- To whom does the LIT report?
- How do the recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.6
126
For private-appointment receivership:
- What is an LIT expected top report on?
- When is interim reporting required, and what documentation is needed?
- To whom does the LIT report to?
- How do the recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.6
127
For CCAA Monitor:
- What is an LIT expected to report on?
- When is interime reporting required, and what documentation is needed?
- To whom does the LIT report?
- How do the recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.7
128
For independent business review (look-see):
- What is an LIT expected to report on?
- When is interim reporting required, and what documentation is needed?
- To whom does the LIT report?
- How do to recipients of the report use the information?
| learning objectives
## Footnote
IP3 4.8
129
Who is the highest-ranking authority responsible for appointing an LIT with specific authority and direction to act?
| learning objectives
## Footnote
IP3 5.1
130
What legislation provides the authority to appoint LITs as trustees, administrators, or receivers?
| learning objectives
## Footnote
IP3 5.1
131
What is the Court's authority under the BIA and the CCAA?
| learning objectives
## Footnote
IP3 5.2
132
In what situations may the Court become involved in insolvency administration?
| learning objectives
## Footnote
IP3 5.3
133
How does the Court become involved in Division I Proposals?
| learning objectives
## Footnote
IP3 5.4
134
How does the Court become involved in Division II Proposals?
| learning objectives
## Footnote
IP3 5.5
135
What is the Court's role when dealing with the property of the bankrupt?
| learning objectives
## Footnote
IP3 5.6
136
What is the Court's involvement in the administration of bankruptcy estates?
| learning objectives
## Footnote
IP3 5.7
137
How does the Court become involved with dealing with bankrupt individuals?
| learning objectives
## Footnote
IP3 5.8
138
What is the Court's role in relation to it's authority, procedures, and legal costs in insolvency cases?
| Leaning objectives
## Footnote
IP3 5.9
139
How is the Court involved in addressing bankruptcy offences?
| learning objectives
## Footnote
IP3 5.10
140
What is the Court's role in matters involving secured creditors, receivers, securities firms, and cross-border insolvencies?
| learning objectives
## Footnote
IP3 5.11
141
How does the Court become involved in dealing with CCAA issues?
| learning objectives
## Footnote
IP3 5.12
142
What are the requirements of a Creditors' Meeting, and what authority doe creditors hold?
| learning objectives
## Footnote
IP3 5.12
143
How are inspectors appointed, and what are their responsibilities and authority?
| learning objectives
## Footnote
IP3 5.14
144
How are interim receivers, court-appointed receivers, and CCAA monitors appointed, and what are their responsibilities and authority?
| learning objectives
## Footnote
IP3 5.15
145
How does the authorization process for Trustees under the BIA compare to the appoointment for monitors under the CCAA?
| learning objectives
## Footnote
IP3 5.16
146
What are the key characteristics of a debtor's assets?
| learning objectives
## Footnote
IP3 6.1
147
What are the methods, reporting, and disclosure requirements for realizing assets/property in a corporate insolvency?
| learning objectives
## Footnote
IP3 6.2
148
What are the methods, reporting, and disclusre requirements for realizing assets/property in a consumer insolvency?
| learning objectives
## Footnote
IP3 6.3
149
What are the trustee's and individual's requirements for tax filing in consumer insolvencies?
| learning objectives
## Footnote
IP3 6.4
150
What authorizations are required when realizing a debtor company's assets?
What issues may arise?
| learning objectives
## Footnote
IP3 6.5
151
What are the different methods for asset realization, and when is each appropriate?
| learning objectives
## Footnote
IP3 6.6
152
What is the process for undertaking each method for realization of assets?
| learning objectives
## Footnote
IP3 6.6
153
What are the key considerations when deciding whether to operate or liquidate a business in a formal restructuring or insolvency?
| learning objectives
## Footnote
IP3 6.7
154
How can cash flow projections be developed and used to support the decision to operate or liquidate a corporate debtor?
| learning objectives
## Footnote
IP3 6.7
155
How should a debtor company's situation be assessed, and what are the issues related to borrowing funds?
| learning objectives
## Footnote
IP3 6.8
156
What are the key issues related to personnel when dealing with a debtor company in insolvency?
| learning objectives
## Footnote
IP3 6.9
157
What are the considerations regarding continued use of premises and leases, and how do they impact the decision to operate in a corporate insolvency?
| learning objectives
## Footnote
IP3 6.9
158
What are the key issues related to the continued supply of goods and services, as well as access to licenses, franchises, and patents in a corporate insolvency?
| learning objectives
## Footnote
IP3 6.10
159
How do other stakeholders and priority creditors influence the decision to operate in a corporate insolvency?
| learning objectives
## Footnote
IP3 6.11
160
In what situations can an LIT risk personal liability when operating the business of a corporate debtor?
| learning objectives
## Footnote
IP3 6.12
161
What are the ethical responsibilities of a trustee or receiver when operating the business of a corporate debtor?
| learning objectives
## Footnote
IP3 6.12
162
What are the trustee's and debtor's respective tax-related obligations?
| learning objectives
## Footnote
IP3 6.13
163
How can assets be effectively advertised for sale?
| learning objectives
## Footnote
IP3 6.14
164
What legal documentation, excise tax exemptions, and potential liabilities are associated with asset sales?
| learning objectives
## Footnote
IP3 6.14
165
When may a creditor and debtor be considered related parties in an insolvency proceeding?
| learning objectives
## Footnote
IP3 7.1
166
What are the various types of claims that arise in a formal insolvency proceeding?
| learning objectives
## Footnote
IP3 7.2
167
How do different types of claims relate in terms of priority?
| learning objectives
## Footnote
IP3 7.2
168
How should the LIT treat each type of claim that arises in a formal insolvency proceeding?
| learning objectives
## Footnote
IP3 7.2
169
How should the LIT effectively deal with third parties who have the right to reposses property?
| learning objectives
## Footnote
IP3 7.2
170
What are 30-day goods' claimants, and how does their statutory priority allow them to take possession of certain property in a debtor's possession?
| learning objectives
## Footnote
IP3 7.2
171
How should an LIT handle landlords' claims including those with priority who distrain on property?
| learning objectives
## Footnote
IP3 7.2
172
What is the Crown's statutory power to seize amounts owed to third parties to recover unremitted source deductions or GST?
| learning objectives
## Footnote
IP3 7.2
173
How do trusts and deemed trusts impact insolvency proceedings?
| learning objectives
## Footnote
IP3 7.2
174
What are consignment agreements, and how should they be addressed in an insolvency case?
| learning objectives
## Footnote
IP3 7.2
175
What are the priority rankings of secured claims in an insolvency proceeding?
| learning objectives
## Footnote
IP3 7.3
176
How should an LIT effectively deal with secured creditors whose security was created by a security agreement, the BIA, or provincial legislation?
| learning objectives
## Footnote
IP3 7.3
177
How should an LIT address secured creditors with post-filing claims created in a CCAA proceeding or BIA proposal?
| learning objectives
## Footnote
IP3 7.3
178
What are the roles of interim lenders, directors, professional advisors, and critical suppliers in post-filing claims?
| learning objectives
## Footnote
IP3 7.3
this is another that I think may benefit from splitting into multiple cards. mfk
179
What is the priority ranking of various types of unsecured creditors, and how should an LIT effectively deal with them?
| learning objectives
## Footnote
IP3 7.4
180
What is the process for reviewing, accepting, or disallowing a proof of claim?
| learning objectives
## Footnote
IP3 7.5
181
What are the key considerations when administering competing claims in consumer insolvencies?
| learning objectives
## Footnote
IP3 7.6
182
What are the key considerations when administering competing claims in a corporate insolvency?
| learning objectives
## Footnote
IP3 7.7
183
When is an automatic discharge available to a bankrupt?
| learning objectives
## Footnote
IP3 8.1
184
What responsibilities does a consumer debtor have under the BIA to be eligible for an automatic discharge?
| learning objectives
## Footnote
IP3 8.1
185
What are the insolvency counselling requirements for consumer debtors?
| learning objectives
## Footnote
IP3 8.1
186
What is the process for an LIT to obtain a debtor's discharge, and what nuances can affect this process?
| learning objectives
## Footnote
IP3 8.1
187
In what circumstances is an automatic discharge not available to a consumer debtor?
| learning objectives
## Footnote
IP3 8.2
188
What is the process for applying for a bankrupt's discharge?
| learning objectives
## Footnote
IP3 8.2
189
Under what circumstances may a bankrupt receive an absolute discharge?
| learning objectives
## Footnote
IP3 8.2
190
In what circumstances may a bankrupt's discharge be refused?
| learning objectives
## Footnote
IP3 8.2
191
In what circumstances may a bankrupt's discharge be suspended?
| learning objectives
## Footnote
IP3 8.2
192
In what circumstances may a bankrupt's discharge be made conditional?
| learning objectives
## Footnote
IP3 8.2
193
In what circumstances may a bankrupt's discharge be annulled?
| learning objectives
## Footnote
IP3 8.2
194
Who can oppose a bankrupt's discharge?
| learning objectives
## Footnote
IP3 8.2
195
Why is communication between the LIT and the debtor important in managing the debtor's behaviour during insolvency?
| learning objectives
## Footnote
IP3 8.3
196
How can surplus income calculations and variations throughout the bankruptcy process become an issue for the debtor?
| learning objectives
## Footnote
IP3 8.3
197
In what situations might creditors oppose a bankrupt's discharge?
| learning objectives
## Footnote
IP3 8.3
198
What additional requirements exist for a Division I proposal compared to a consumer poroposal, and how do these impact the trustee's efforts and fees?
| learning objectives
## Footnote
IP3 8.4
199
What are the consequences of non-performance of the terms of a proposal?
| learning objectives
## Footnote
IP3 8.4
200
What is the approval process for a consumer proposal?
| learning objectives
## Footnote
IP3 8.5
201
What options are available to the administrator and debtor for ongoing monitoring during the term of a consumer proposal?
| learning objectives
## Footnote
IP3 8.5
202
When and why can a consumer proposal be annulled, amended, or revived?
| learning objectives
## Footnote
IP3 8.5
203
Why, and under what conditions might a bankrupt file a consumer proposal?
| learning objectives
## Footnote
IP3 8.5
204
What methods are available to a trustee to encourage a designated corporate officer to comply with their duties in a bankruptcy?
| learning objectives
## Footnote
IP3 8.6
205
What circumstances may lead to the annulment of a corporate bankruptcy?
| learning objectives
## Footnote
IP3 8.6
206
What steps and processes must be completed and properly documented to proceed to the final stages of the insolvency process?
| learning objectives
## Footnote
IP3 9.1
207
What are the general requirements for finalizing an estate in an insolvency proceeding?
| learning objectives
## Footnote
IP3 9.1
208
What considerations and processes must be completed and properly documented to finalize an insolvency process for a consumer debtor insolvency?
| learning objectives
## Footnote
IP3 9.2
209
What matters should an LIT consider when assessing whether they have properly completed each step in the administration of an estate?
| learning objectives
## Footnote
IP3 9.3
210
What are the key processes and associated documentation required to finalize an insolvency process for Ordinary Administrations?
| learning objectives
## Footnote
IP3 9.5
211
What are the key processes and associated documentation required to finalize Division I Proposal?
| learning objectives
## Footnote
IP3 9.6
212
What are the key processes and associated documentation required to finalize receiverships?
| learning objectives
## Footnote
IP3 9.7
213
What are the key processes and associated documentations required to finalize CCAA proceedings?
| learning objectives
## Footnote
IP3 9.8
214
What is the process for a trustee to apply for and obtain a discharge?
| learning objectives
## Footnote
IP3 10.1
215
What are the specific requirements for obtaining a trustee's discharge?
| learning objectives
## Footnote
IP3 10.1
216
In corporate insolvencies, when is the LIT's role considered complete, allowing the discharge process to be initiated?
| learning objectives
## Footnote
IP3 10.3
217
What documentation is required for each type of corporate insolvency administration for trustee discharge?
| learning objectives
## Footnote
IP3 10.3
218
Who receives the final reporting documentation, and which party grants the discharge (if applicable), in each type of corporate engagement?
| learning objectives
## Footnote
IP3 10.3
