Act of Bankruptcy: Canada Debt .ca defines Act of Bankruptcy

Bankruptcy Term Act of Bankruptcy

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Canada Debt has the definition to the bankruptcy and debt term Act of Bankruptcy. Finding answers to terms such as Act of Bankruptcy can be difficult, especially if there is more than one definition which is why we have created a page dedicated to financial terms dealing exclusively with debt. Act of Bankruptcy in financial terms means...

In debt and bankruptcy terms, the phrase / term 'Act of Bankruptcy' is used as follows:

An act committed by a debtor as defined under the Bankruptcy and Insolvency Act. One of the most common is if a debtor ceases to meet his liabilities generally as they become due. A creditor with a provable claim of $1000 and over may file a petition for a receiving order if the debtor has committed such an act within the six months preceding the filing of the petition.