How can a trustee in bankruptcy protect a bankrupt’s interest in real estate using a bankruptcy caution without being registered as the owner?

The safest way for a trustee in bankruptcy to protect title to real estate owned by a bankrupt is to register a bankruptcy caution.

What happens if you default on a business loan?

Defaulting on a business loan is a reality for many Canadian businesses, especially during COVID-19. But what happens when you default? And are there any ways to avoid the worst consequences of a default? What to expect when your bank demands payment The first thing the bank will do will be to demand payment andContinue reading “What happens if you default on a business loan?”

Credit Application Best Practices to Get You Paid

We all want customers and we go to great lengths to keep them happy.  One of those lengths is letting customers pay for products in 30, 60 or even 90 days.  It is important to remember that when you do this you are lending your money to your customer.  Here’s how to safely extend creditContinue reading “Credit Application Best Practices to Get You Paid”

Does your corporation’s bankruptcy affect your personal credit?

The short answer is no; your corporation’s bankruptcy does not affect your personal credit.  Your corporation is a separate legal entity.  It has its own debts, its own contracts, and its own credit.  Your corporation’s bankruptcy does not affect your personal credit and the fact that a corporation that you were a shareholder, director, orContinue reading “Does your corporation’s bankruptcy affect your personal credit?”

Can a receiver partially disclaim a lease?

One of the tools available to a receiver is the power to affirm or disclaim contracts.  Paragraph 3 of the commercial list users committee model receivership order sets out the powers generally given to a receiver appointed pursuant to section 243(1) of the Bankruptcy and Insolvency Act and section 101 of the Courts of JusticeContinue reading “Can a receiver partially disclaim a lease?”

BEWARE OF DEBTOR-IN-POSSESSION FINANCING: THE RISKS TO EXISTING LENDERS AND VENDOR-TAKE-BACK MORTGAGEES

​Priority is a major consideration for any lender when evaluating risks associated with financing. This becomes all the more important when an insolvent debtor seeks to restructure and access debtor-in-possession (“DIP”) financing (also referred to as “interim financing”). DIP financing is financing obtained by an insolvent debtor when restructuring their business. It is unique becauseContinue reading “BEWARE OF DEBTOR-IN-POSSESSION FINANCING: THE RISKS TO EXISTING LENDERS AND VENDOR-TAKE-BACK MORTGAGEES”

What to do when the bank comes knocking

The advantages and risks of entering into a forbearance agreement with your lender COVID-19 is creating financing difficulties for all businesses.  It is now harder to pay lenders and suppliers.  What can you do about these financial difficulties?  Is bankruptcy the only option or is there something less disruptive than a formal restructuring that canContinue reading “What to do when the bank comes knocking”