D. The Role of the Bankrupt

Author:Roderick J. Wood
Profession:Faculty of Law. University of Alberta
Pages:236-237
 
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Page 236

The bankrupt is obligated to assist in the administration of the bankrupt estate in several ways. The bankrupt must:

· prepare a statement of affairs;140· meet with the official receiver and answer his or questions, and attend the first meeting of creditors and, when required, any other meeting of creditors or inspectors or with the trustee;141· submit to any examinations under oath as may be required;142· disclose all records, documents, and property and deliver them to the trustee, and assist the trustee in making an inventory of the assets;143· disclose to the trustee the details concerning pre-bankruptcy gifts or dispositions of property in order to permit the trustee to determine if they can be set aside or otherwise challenged;144· aid in the realization of property and execute any instruments as may be required;145

· examine all proofs and inform the trustee of any false claims;146

· inform the trustee of any material change in the bankrupt’s financial situation and any change in residence or address;147and

· disclose to the trustee particulars of property acquired after a court grants a conditional discharge.148

Page 237

The bankrupt may be convicted of a bankruptcy offence and fined or imprisoned for failing to perform these duties without reasonable excuse.149A failure to perform these duties is also a factor that a bankruptcy court will consider in granting or refusing an order of discharge of a bankrupt.150

[140] Ibid., s. 158(d). The trustee ordinarily assists the bankrupt in the preparation of the statement of affairs.

[141] Ibid., ss. 158(c) and (h).

[142] Ibid., ss. 158(j) and 163.

[143] Ibid., ss.158(a), (b), and (e).

[144] Ibid., s. 158(g).

[145] Ibid., ss. 158(k) & (l).

[146] Ibid., ss. 158(m) & (n).

[147] Ibid., ss. 158(n.1) and (p).

[148] Ibid., s. 176(1).

[149] Ibid., s. 198(2).

[150] Ibid., s. 173(1)(o). See also ibid., s. 176(2).

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