Retailer Bankruptcy

2009-03-03   minute read

The Bankruptcy and Insolvency Act contains provisions that allow a third party to claim possession of property in possession of a bankrupt. The process for claiming the property is set out in Section 81 of the BIA and requires the third party to file with the Trustee a proof of claim (Form 74) verified by affidavit giving the grounds on which the claim is based and sufficient particulars to enable the property to be identified by the Trustee.  If this evidence is supplied, and assuming that the sale of property was between unrelated parties and for fair market value, the Trustee should be able to release that property to the purchaser. Judy Scott Meyers Norris Penny Limited British Columbia 604.949.2113

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