What if a trustee forgets to send the notice of bankruptcy?
After a person or company goes bankrupt, the trustee has to send a notice out.
The notice of bankruptcy goes to the bankrupt, the creditors and to the Superintendent of Bankruptcy, telling everyone when and where the first meeting of creditors will be held.
But what happens if a trustee forgets to send the notice out?
It happens. Not by anyone’s fault. Just an oversight.
Can the trustee send it out late?
The law is clear: you have to ask the court for an extension. (See section 102(2)(b) of the Bankruptcy and Insolvency Act.)
So a trustee has to call their lawyer.
The lawyer calls the bankruptcy court office to book a time for a “short motion”, which means under 10 minutes.
Then the lawyer drafts a Notice of Motion and an Affidavit for the Trustee to sign, saying that due to an administrative error they didn’t send the notice out.
Under the Act, the court can give from 10 days’ extension up to 30 days. But the court can also give the trustee a week if they’re ready to send the notice out.
When at court, make sure the lawyer has the original affidavit with two draft orders for the Registrar to sign.
And presto, the oversight is fixed, and the trustee can send out the notice for the first meeting of creditors.