CHAPTER 28

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1. Under the Bankruptcy and Insolvency Act, the definition of a fraudulent preference is

a sale that can be declared void because it was not made in good faith or for valuable consideration
a payment made to a person related to the bankrupt within one year of the bankruptcy order with the intention of giving the related person priority over at least one other creditor
a transfer of real or personal property made to defeat, hinder, delay, or defraud
a payment made by an insolvent debtor within three months of bankruptcy with the intent of favouring one creditor over another
failure by a bankrupt party to provide full disclosure, to the trustee in bankruptcy, of all assets held

2. Under the Bankruptcy and Insolvency Act, the definition of a reviewable transaction is

a sale that can be declared void because it was not made in good faith or for valuable consideration
a payment made to a person related to the bankrupt within one year of the bankruptcy order with the intention of giving the related person priority over at least one other creditor
a transfer of real or personal property made to defeat, hinder, delay, or defraud
a payment made by an insolvent debtor within three months of bankruptcy with the intent of favouring one creditor over another
failure by a bankrupt party to provide full disclosure, to the trustee in bankruptcy, of all assets held

3. Under the Bankruptcy and Insolvency Act, the definition of a settlement is

a sale that can be declared void because it was not made in good faith or for valuable consideration
a payment made to a person related to the bankrupt within one year of the bankruptcy order with the intention of giving the related person priority over at least one other creditor
a transfer of real or personal property made to defeat, hinder, delay, or defraud
a payment made by an insolvent debtor within three months of bankruptcy with the intent of favouring one creditor over another
failure by a bankrupt party to provide full disclosure, to the trustee in bankruptcy, of all assets held

4. Under the Bankruptcy and Insolvency Act, the definition of a fraudulent conveyance is

a sale that can be declared void because it was not made in good faith or for valuable consideration
a payment made to a person related to the bankrupt within one year of the bankruptcy order with the intention of giving the related person priority over at least one other creditor
a transfer of real or personal property made to defeat, hinder, delay, or defraud
a payment made by an insolvent debtor within three months of bankruptcy with the intent of favouring one creditor over another
failure by a bankrupt party to provide full disclosure, to the trustee in bankruptcy, of all assets held

5. To become a certified insolvency practitioner, a person must

hold a C.A. designation
hold a C.M.A. designation
hold a C.G.A. designation
belong to the C.I.P.A.
pass the written and oral exams

6. In deciding whether to accept an appointment as trustee for a bankrupt, a licensed trustee will consider

whether there is any conflict of interest
whether there are sufficient funds in the estate to ensure payment
whether the case is in the part of the country in which the trustee is licensed to practice
a & b
all of the above

7. The formal process by which a bankrupt is released from most of his liabilities is called

a fraudulent conveyance
an act of bankruptcy
a discharge
a release
a trusteeship

8. In order for a creditor to be able to petition a debtor into the bankruptcy process, the debtor must owe at least $1000 and

made an improper settlement within the preceding six months
filed an inaccurate financial statement with the trustee
committed an act of bankruptcy
submitted a proof of claim with the superintendent
filed a proposal with his creditors

9. Provinces that have not made the orderly payment of debts system available to consumer debtors include

British Columbia
Alberta
Ontario
Nova Scotia
Prince Edward Island

10. The holder of a security interest in real property may be hesitant to enforce the interest because

environmental problems may make its market value considerably less than the amount required to cover the debt
there may be a substantial risk of liability for environmental harm
the trustee in bankruptcy may overrule the secured creditor's claim
a & b
all of the above