Any act on the part of an insolvent debtor, including being in a state of insolvency, that will trigger the right of a creditor to make an application for a bankruptcy order against the debtor.  The Bankruptcy and Insolvency Act identifies at least eight specific acts that could precipitate bankruptcy.

By failing to honour the consumer proposal that he had made to his creditors, the debtor had committed an __________.

A type of security arrangement in which the creditor obtains first right to have parties making regular payments to the debtor render such payments to the creditor instead, in the event the debtor has defaulted.

Under the _______________, all customers of the department store were advised to submit all subsequent payments on their accounts to the department store’s major creditor instead.

Under the Bankruptcy and Insolvency Act, any act on the part of an insolvent person that renders him liable to being fined, imprisoned, and having his discharge from bankruptcy either delayed or denied.  It can include several actions that are also “acts of bankruptcy,” and such things as lying to the trustee in bankruptcy.

By falsifying his financial accounts to show that the firm’s liabilities were only half of what they really were, the insolvent debtor had committed a __________.

Someone who purchases goods at fair market value from another party whom he honestly believes has legal title to the goods at the time the transaction occurred and who is unaware of any third-party claims against the goods.

The purchaser had every reason to believe the car he purchased from the rogue belonged to him when he paid its fair market value; he was a _______________.

A specific kind of statutory lien allowed to contractors, suppliers of materials, and wage earners who make improvements to a debtor’s land and/or buildings and do not get paid.  Unlike most liens which require retaining possession of the property in order for the lien to exist, __________ come into existence when the appropriate documentation is filed at the Land Title Office where the property is located within the time limits specified in the act.

When the defendant failed to pay the landscaper for its work on her premises, the landscaper filed a __________ at the Kamloops Land Title Office in support of its claim for those services.

An arrangement in which an insolvent debtor attempts to give preference to one unsecured creditor over other unsecured creditors; this can be done in a number of ways, including making an unsecured creditor a secured creditor.  It is both an “act of bankruptcy” and a “bankruptcy offence” under the Bankruptcy and Insolvency Act.

She made a __________ when she allowed one of her five creditors, a personal friend, to obtain a chattel mortgage over her car at a time when she was insolvent.

An executory contract in which a borrower/debtor transfers legal title to goods to the lender/creditor as security for the debt; in the meantime, the __________ retains use and possession of the goods until such time as he defaults.

The finance company took a _________ over the sailboat when it loaned the boat’s skipper the sum of $30,000; if the skipper defaulted on the loan, the finance company was entitled to seize possession of the boat.

An executory contract in which the seller of goods has security over the goods until the buyer has completely paid for them by retaining legal title to the goods; in the meantime, the buyer has use and possession of the goods until such time as she defaults.

Because she was unable to pay for the truck’s purchase price of $23,000, Mavis made a _______________ with the vendor that allowed her to make monthly payments for the car over a period of five years.

A lien that, under the authority of the Repairers Lien Act, can be exercised by a party who repairs, sells or stores motor vehicles, airplanes, boats or outboard motors.  The lien can attach to the debtor’s property even after the creditor has given up possession of the goods, provided it obtains the debtor’s written acknowledgement of indebtedness and the garagekeeper registers the lien within 21 days.

The auto repair business filed its _______________ at the Personal Property Registry against the defendant’s truck two months after he regained possession, when it became apparent he was not going to pay the repair bill.

Under the Bankruptcy and Insolvency Act, any one of a number of specified classes of creditors whose claims against the assets of the bankrupt will rank in priority over those of unsecured creditors.  Preferred creditors include the trustee in bankruptcy, funeral homes, municipalities, landlords, etc., and they are ranked, among themselves, in a particular order.

As a __________, the bankrupt’s landlord will be able to claim $1,800 in priority to the unsecured creditors, that sum representing three months of the six months’ rent that the bankrupt had failed to pay.

A creditor who takes some security over the debtor’s assets (i.e. gets collateral) preferably at the time the credit is extended.  Typically such creditors can seize the assets in question upon the debtor’s default rather than having to first proceed with a civil action and to obtain a judgment allowing them to do so.

The bank was a __________ in that it did not lend the defendants the $50,000 until the latter had granted a mortgage over their house to the bank.

General creditors who, whether the debtor is insolvent or not, do not have security over any collateral of the debtor at the time the debt is incurred.  They rank below both secured creditors and preferred creditors in the event that the debtor’s assets become the subject of bankruptcy.  They must take the debtor to court and get judgment before they can take any steps to retrieve the debtor's assets.

The plumbing company was owed $380 for it services but, because it failed to file a builders lien in time, it ranks as an __________ against the insolvent business.

A lien created under the Sale of Goods Act whereby a buyer, has paid all or some of the purchase price for unascertained or future goods from a supplier of materials. If these goods are seized by a third party before they are delivered to the buyer, the buyer will be entitled to enjoying the status of a secured creditor as against those goods and even has priority over other security interests.

Because the contractor had a __________ against the hardware it purchased for $4,997.86, it had priority over other creditors when the the hardware’s inventory was seized by the trustee in bankruptcy.

A contractual arrangement between a creditor and a debtor whereby the creditor obtains or retains some security over the assets of the debtor (i.e. she has collateral) until the debt is paid.  This security can range from having legal title to the assets until the debt is paid to having the right to seize the assets without first having to sue for debt in a civil action.

A conditional sale contract is a __________ in that the seller is allowed to retain legal title to the goods until such time as the buyer has paid for them.

A third party’s promise to pay the creditor of a debtor the amount owed by the debtor should the debtor default.  To be enforceable in B.C., it must be made in writing and signed by the guarantor.

The _____ promised the bank that if Mr. Jones failed to make any one of his monthly payments, the bank could look to his father for payment of what was owing.

Any document that shows legal title in goods has passed from one party to another; often retained as security by the party with title but not having possession of the goods in question.

The creditor retained the __________ for the vehicle after making the chattel mortgage agreement with the debtor; this gave the creditor legal title to the vehicle, while the debtor had possession and use of it until it was paid for.

A specific category of non-tangible personal property that consists of something with which the owner can make some legal claim rather than depend upon possession alone.  These include such things as assignments, negotiable instruments, share certificates, and various forms of intellectual property.

Unlike a computer, the ownership of which is primarily based on possession, an assignment is a _________: the possessory right of the assignee is not observable until she seeks to enforce that right against the debtor.