Act of Bankruptcy
Bankruptcy Act also called as the Insolvency Act is defined as the decree according to which there is a lawful practice of the bankruptcy laws to curb this menace especially in Canada.
Major attributes of Bankruptcy Act
There are several attributes which are considered under this act. The most important issues concerned about this Act and come into practice with its enactment include the bankruptcy cases, all the consumer proposals, commercial offers and issues and the issue of receivership in Canada. All these issues are addressed by the Bankruptcy Act on both public and national level. Therefore a proper study and analysis of this Act is necessary before applying it to any case study or happening.
Studying Bankruptcy Act
The study of the Bankruptcy Act has been made compulsory for all the students who intend to study finance and accountings. The most important office which is governed by the Bankruptcy Act is the Superintendent of Bankruptcy. From this, it can be well imagined that it is practiced on federal level. Therefore it is a federal agency and helps to ensure any kind of bankruptcy being administered at any level. Therefore it requires a fair dealing and honest working on part of the workers of this agency. This agency practices this Act in a perfectly ordered manner.
Primary Purpose of Bankruptcy Act
Usually the primary purpose of the Bankruptcy Act is considered to freeze and preserve the assets of the debtor. This is supposed to be done for the own benefit of the creditors. However this must not be taken as the only or the primary function of the officials exercising this act. In addition to this, this Act also enables the debtors to get rehabilitated by forgiving their unpaid debts. In this way the huge burden on the debtors can be released and they can be benefited in many ways. The individuals can then be restored as the productive and honest members in the society.
To whom is applied
The major inclusions of the Bankruptcy Act is applied are the bankrupt persons and the insolvent persons. Usually the debtors whose liabilities to different creditors increase day by day and exceed the amount of 1000 dollars are then dealt by this Act.