Question: 7. Vander Brigg (VB) is a small business that is in financial difficulty. VB is unable to pay its debts and decided to voluntarily file
7. Vander Brigg (VB) is a small business that is in financial difficulty. VB is unable to pay its debts and decided to voluntarily file for bankruptcy. VB has several creditors to whom it owes funds. Among the creditors is Burton Market, from whom VB purchased fruits and vegetables. VB would receive produce from Burton Market and place them in inventory with produce received from other suppliers. Burton Market has been unpaid for three months. Which of the following accurately describes the recourse available to Burton Market as a secured creditor?
a) Burton Market can claim the unpaid amount for all of the goods delivered.
b) Burton Market can repossess all of the unpaid goods with the assistance of a bailiff.
c) Burton Market can claim the amount owed for goods delivered within the last 30 days provided it filed a claim in accordance with the requirements set out in the Bankruptcy and Insolvency Act.
d) Burton Market can claim the amount owed for goods delivered within the last 15 days provided it filed a claim in accordance with the requirements set out in the Bankruptcy and Insolvency Act.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
