| Author: |
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Unsecured Creditor |
| Date: |
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January 10 , 2002 |
| Question: |
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If one is an unsecured creditor - amounts owing being cash
payments going back from present to some 10 years - does one enjoy
preferred debt-status over other unsecured creditors if one is the one
to initiate bankruptcy proceedings of one's debtor?
Does 'age' of debts enter the distribution formula of funds recovered in bankruptcy proceedings?
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From: |
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Ann Clarke, Collins Barrow Limited |
| Date: |
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January 11, 2002 |
| Answer: |
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No, the age of the debt does not determine priority or preferred status in a bankruptcy. Unsecured creditors with preferred status are
determined in accordance with Section 136 of the Bankruptcy and
Insolvency Act, and include some employee wages, municipal taxes on
property, landlords, amounts owed to WCB, child support and costs of
first seizing creditors. A petitioning creditor generally isn't
preferred unless they fit into one of the categories above.
Ann Clarke
phone: (403) 296-2972
aclarke@moneyhelp.ca
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