How often are debts contested in Bankruptcy?
October 29th, 2010 by Questions
I was wondering how often a debt/debts to creditors are contested during the bankruptcy process? I see that it can happen during a consumer proposal since their is a vote, but how does this work during bankruptcy?
For example, if I lost everything I own due to a failing business and the majority of my debts are unsecured, do those types of debt often get contested when bankruptcy is filed? Or since they are unsecured, do creditors just accept the bankruptcy? Assuming nothing suspicious is found with spending patters ovcourse.
Also, with a business lease that is personally guaranteed, do leases often get contested by the landlord if both then business and person goes bankrupt? Since the landlord can just take their property back and re-lease it to someone else, just curious as to how often problems can arise in these situations?
Any information would be greatly appreciated.
Posted from: Ontario