Generally, in a bankruptcy the debtor hands over control of all of the assets of the bankrupt entity to a licensed Trustee in Bankruptcy who realizes on those assets and distributes the proceeds to creditors based on the scheme of distribution outlined in the Act.
A company may become bankrupt voluntarily by filing an Assignment in Bankruptcy through a
licensed Trustee, or involuntarily by having the Court order the company into bankruptcy
following the hearing of a petition filed by a creditor, or as the result of an unsuccessful
Proposal.
