{"id":5324,"date":"2017-11-01T00:00:00","date_gmt":"2017-11-01T04:00:00","guid":{"rendered":"https:\/\/dev-ginsberg-gingras.flywheelsites.com\/21-days-before-the-meeting-of-creditors\/"},"modified":"2021-04-13T18:16:15","modified_gmt":"2021-04-13T22:16:15","slug":"21-days-before-the-meeting-of-creditors","status":"publish","type":"post","link":"https:\/\/ginsberg-gingras.com\/en\/21-days-before-the-meeting-of-creditors\/","title":{"rendered":"21 Days Before the Meeting of Creditors"},"content":{"rendered":"

A creditors\u2019 meeting is convened by the Licensed Insolvency Trustee (LIT) within 21 days following an assignment in bankruptcy <\/a>(except in the case of summary administration).<\/p>\n

Once appointed, the LIT must take all necessary steps to administer the file until the first creditors\u2019 meeting is held.<\/p>\n

Here are the statutory obligations of an LIT up to the creditors\u2019 meeting.<\/p>\n

Although this process has many steps, they are to a certain extent discretionary on the part of the LIT, depending on the type of file they are administering.<\/p>\n

Steps leading up to the creditor’s meeting<\/h2>\n
    \n
  1. The LIT must comply immediately if a security is required by the superintendent of bankruptcy when a certificate of appointment is issued.<\/li>\n
  2. The debtor\u2019s mail may be redirected by the LIT.
    \nThis step generally occurs when the debtor has, for example, accounts receivable, which facilitates realization of assets for the benefit of the creditors.<\/li>\n
  3. The LIT must immediately take possession of all the debtor\u2019s accounting records.<\/li>\n
  4. A complete inventory of the debtor\u2019s property must be made. The LIT must also ensure that those assets are in a secure location. The LIT will generally change the locks for the premises and insure property.<\/li>\n
  5. In the event that perishable goods are on the premises, the LIT must dispose of them quickly.<\/li>\n
  6. A separate bank account to administer the file must be opened. Proper accounting must be conducted to fully identify revenues and expenses.<\/li>\n
  7. In the five days following the issuance of a certificate of appointment, the LIT must send a bankruptcy notice to all known creditors and file same with the Superintendent of Bankruptcy. This notice must indicate the date, time, and location of the creditors\u2019 meeting. The debtor\u2019s statement of affairs, a proof of claim, and a proxy form are included with the notice.<\/li>\n
  8. A notice in the local newspaper of the debtor\u2019s locality must be published no later than five days before the creditors\u2019 meeting.<\/li>\n
  9. Claims submitted by creditors are received and reviewed.<\/li>\n
  10. The LIT must then prepare a preliminary report, which will be provided to the creditors at the creditors\u2019 meeting.
    \nAll decisions made and steps taken by the LIT are included in this report. It also includes the LIT\u2019s analysis of transactions that may require closer attention (transfers at under value).
    \nFinally, the LIT offers his or her professional opinion about estimated realization to creditors following the sale of assets, net of secured claims, and the Crown (payroll deductions).<\/li>\n<\/ol>\n

    The LIT\u2019s work in these first 21 days is essential. During the meeting, the creditors have the opportunity to ask questions to the LIT on any work carried out. Decisions about selling assets will be made to maximize the realization to creditors.\t\t

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    solution\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/p>\n

    Need more information?<\/h2>\n

    We hope that this brief overview has helped you to learn about the important work the Licensed Insolvency Trustee does within the 21 days preceding the creditors\u2019 meeting.<\/p>\n

    For more information, have a look at this article by Sylvie Lyons about the first creditors\u2019 meeting<\/a>.<\/p>\n

    You can, of course, contact us at any time. We would be pleased to answer all your questions.<\/p>\n","protected":false},"excerpt":{"rendered":"

    A creditors\u2019 meeting is convened by the Licensed Insolvency Trustee (LIT) within 21 days following an assignment in bankruptcy (except in the case of summary administration). Once appointed, the LIT must take all necessary steps to administer the file until the first creditors\u2019 meeting is held. Here are the statutory obligations of an LIT up […]<\/p>\n","protected":false},"author":47,"featured_media":5038,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[667],"tags":[728],"class_list":["post-5324","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-creditor"],"acf":[],"yoast_head":"\n21 Days Before the Meeting of Creditors | Ginsberg Gingras<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ginsberg-gingras.com\/en\/21-days-before-the-meeting-of-creditors\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"21 Days Before the Meeting of Creditors\" \/>\n<meta property=\"og:description\" content=\"A creditors\u2019 meeting is convened by the Licensed Insolvency Trustee (LIT) within 21 days following an assignment in bankruptcy (except in the case of summary administration). Once appointed, the LIT must take all necessary steps to administer the file until the first creditors\u2019 meeting is held. Here are the statutory obligations of an LIT up […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ginsberg-gingras.com\/en\/21-days-before-the-meeting-of-creditors\/\" \/>\n<meta property=\"og:site_name\" content=\"Ginsberg Gingras\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/GinsbergGingras\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-01T04:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-04-13T22:16:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ginsberg-gingras.com\/wp-content\/uploads\/2020\/04\/The-21-days-before-the-meeting-of-creditors.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tania Daher\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" 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