What our clients in Alberta need to know about in a First Meeting of Creditors in a Bankruptcy
Depending on type of administration in a bankruptcy, a First Meeting of Creditors (“FMOC”) may or may not be required to be held.
In an Ordinary Administration bankruptcy, one in which realizable assets in the bankruptcy Estate will exceed $15,000, a FMOC is required to be held within 21 days of the date of the bankruptcy.
In a Summary Administration bankruptcy, one in which realizable assets in the bankruptcy Estate will be less than $15,000 a FMOC is only required if:
The Official Receiver directs the Trustee to do so; or
The Creditors who have in the aggregate of at least 25% in value of the proven claims request the Trustee to do so.
As a debtor in a bankruptcy, you are required to attend this meeting. The purpose of the meeting is to:
Consider the affairs of the bankrupt
To affirm the appointment of the Trustee or to substitute another Trustee in place thereof
To appoint inspectors
To give direction to the Trustee as the creditors may see fit with reference to the administration of the Estate.
If a FMOC is called, you should speak with your Trustee as to what you may expect during the meeting, how the meeting will be conducted and what your rights as a debtor are.