A bankruptcy is a legal situation where a person (individual), company or institution (legal persons) can not cope with the payments to be made (liabilities), because they are superior to their available economic resources ( assets). A natural or legal person who is bankrupt is called failure. When the debtor is bankrupt or judicially declared bankrupt, we proceed to a trial of bankruptcy or insolvency proceedings, which examines whether the debtor can deal with its assets to pay outstanding obligations.
From the category archives:
Bankruptcy
Superior Court in Bankruptcy.
Thus, if the bankrupt is not eligible for automatic release, he must present himself at the Palais de Justice for the hearing of his application for release. Previously, the trustee will request a date for the hearing and notify the bankrupt. This hearing will be heard by a judge or the registrar of the Superior Court in bankruptcy.
It is understood that the bankrupt is required to attend this hearing. After hearing this, different judgments can be made:
- Absolute discharge – the bankrupt is discharged from all dischargeable debts without any condition
- suspended discharge – the bankrupt will receive an absolute discharge in a period determined by the Court without further conditions
- parole – the bankrupt will be released only when it has fulfilled the conditions imposed by the Court or the trustee in his trial, usually the payment of a specified amount within a period
- denied release – this is an exceptional situation that will only occur in severe cases of fraud, of multiple bankruptcies (more than twice) or serious breaches of duties and obligations imposed on the bankrupt by the Bankruptcy Act and insolvency.
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Superintendent of Bankruptcy
The trustee, the Superintendent of Bankruptcy or creditors may oppose the bankrupt’s discharge for any reason they deem reasonable as:
- The bankrupt has not fulfilled its obligations under the Act during his bankruptcy
- the bankrupt has caused his bankruptcy by rash speculations or unjustifiable extravagance in living, by gambling or neglect of his business affairs
- the bankrupt has been guilty of fraud or embezzlement and other reasons specifically provided in the Act.
The trustee may object or make judgments of parole if the bankrupt has not complied with the agreements he had taken with him, including its monthly payments and the presentation of her tax refunds.
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