Man Charged for Bankruptcy Offences

CAMBRIDGE, ON, Dec. 2 /CNW/ - The Royal Canadian Mounted Police (RCMP) Kitchener Detachment Commercial Crime Section charged a male in relation to bankruptcy offences.

A 67 year-old resident of Cambridge, Ontario, has been charged with 2 counts of failure to comply with the duties of a bankrupt, contrary to Section 198(2) of the Bankruptcy and Insolvency Act (BIA).  As a bankrupt person, the accused was required to perform numerous duties as required under Section 158 of the BIA.  Police allege that the accused failed to prepare and submit a Statement of Affairs under Section 158(d), and failed to attend the first meeting of creditors under Section 158(h).  If convicted, the accused may be sentenced to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding three years, or to both.

The RCMP is responsible for investigating incidents of bankruptcy fraud or bankruptcy offences on behalf of the Office of the Superintendent of Bankruptcy (OSB), an agency of Industry Canada.  A bankruptcy may result when an individual or company incurs debts and fails to meet his liabilities generally as they become due, thereby putting the creditor's interests in jeopardy.  Although individuals and companies may voluntarily file an assignment in bankruptcy, a creditor may also force a bankruptcy by making an Application for a Bankruptcy Order.  When a bankruptcy occurs, a Trustee in Bankruptcy, a private sector professional licensed by the OSB, is appointed to administer the estate of the bankrupt person.  The bankrupt person is required by law to comply with numerous duties; failure to comply with duties of a bankruptcy is a chargeable offence under the BIA.

Anyone wishing to learn more about bankruptcy, the bankruptcy process, or alternatives to bankruptcy is encouraged to visit the Office of the Superintendent of Bankruptcy website at www.osb-bsf.ic.gc.ca.

For further information: For further information:

Constable Laurence YIM	or
RCMP Kitchener Detachment	Industry Canada, Media Relations
Media Relations	[phone]
[phone], Extension 235