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:
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The Official Receiver directs the Trustee to do so; or
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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:
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Consider the affairs of the bankrupt
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To affirm the appointment of the Trustee or to substitute another Trustee in place thereof
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To appoint inspectors
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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.