Bankruptcy Question & Answer Forum - Canada

Author:		Ken
Date:		November 14, 2005
Question:		I am going to court to collect on a bad cheque and the party that gave me the cheque has asked me to accecpt monthly payments. I cannot trust this will happen but he says he will claim bankrupcy if it goes to court. What am I in for as far as collecting the debt and what are the best opions for both parties? This debt has been going for 9 months and he is/was a friend. Looking for advice.
From:		Bruce, Alger & Associates Inc.
Date:		November 15, 2005
Answer:		If your debtor goes bankrupt, then your remedy to collect is through the bankruptcy process which is overseen by the trustee. Any money collected by the trustee will go first to pay the costs of administration, second to preferred creditors and finally the balance will be split amongst unsecured creditors. All payments to creditors are subject to a levy by the Superintendent of Bankruptcy. Depending on the debtor's financial situation, he might be bluffing, in which case you should press on, or he could be insolvent, in which case you may want to consider getting what you can now. Good luck. Bruce Alger phone: (403) 296-2970 balger@alger.ca