Читать книгу Bennett on Consumer Bankruptcy - Frank Bennett - Страница 8

The consumer debtor must meet certain conditions under the Bankruptcy and Insolvency Act in order to go bankrupt:

• The consumer debtor must owe at least $1,000 to any of his or her creditors.

• The consumer debtor must commit “an act of bankruptcy.”

While there are many acts of bankruptcy, the usual one connected to consumers is that the consumer must be unable to meet the regular bill payments to creditors according to their terms. For example, if the debtor does not pay his or her bills within 30 days as promised, then the debtor is unable to pay those debts in the ordinary course; or the debtor must not have enough property which, if sold at a fair market sale, would be sufficient to pay all the creditors in full. For instance, if the debtor were to list all his or her personal possessions and then have a liquidator value them, the likelihood is that their total value would be very low compared to the size of the debt.

If the consumer debtor meets these two conditions, the consumer debtor is considered insolvent. The consumer debtor then qualifies to go bankrupt voluntarily or he or she can be put into bankruptcy by any one of the creditors if the creditors are willing to go to court to do it.