What Is An Assignment In Bankruptcy?
An Assignment in Bankruptcy is a legal document where the Company transfers or assigns its assets to a Trustee in Bankruptcy for the general benefit of the Company’s Creditors. An Assignment in Bankruptcy, when filed with the Official Receiver (the Superintendent of Bankruptcy’s representative in the province) is the starting point of the Bankruptcy. The date of filing of the assignment is the effective date of Bankruptcy. Bankruptcy serves to transfer title and ownership of the Company’s assets to the Trustee. The Bankrupt Company no longer has any right to deal with these assets. The Assignment in Bankruptcy also causes a “Stay of Proceedings”, which prohibits all Creditors from taking or continuing legal action against the Company. Once the Company is Bankrupt, credit collection procedures must be terminated and Creditors cannot continue with garnishees or lawsuits. Creditors must make their inquiries through the Trustee.
An Assignment in Bankruptcy is a legal document where you assign or transfer your assets to a Trustee in Bankruptcy for the general benefit of the creditors. An Assignment in Bankruptcy, when filed with the Official Receiver (the Superintendent of Bankruptcy’s representative in the province) is the starting point of the bankruptcy. The date of filing of the assignment is the effective date of bankruptcy. Bankruptcy serves to transfer ownership of your assets to the Trustee. The Bankrupt person no longer has any right to deal with these assets. However, certain assets are exempt from seizure (meaning you can keep them) and are not transferred to the Trustee. The Assignment in Bankruptcy also causes a “Stay of Proceedings”, which prohibits all creditors from taking legal action against you, with the exception of alimony or child support proceedings. Once you are bankrupt, credit collection procedures are terminated and creditors cannot continue with garnishments or lawsuits. Creditors mu
