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By Schoder R.V., Horrigan V.C.

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The statement must give a complete and frank list of debts (secured and unsecured), assets and lists of debtors and creditors, etc. The official receiver will provide the correct form to the debtor and instruct him on the correct manner of completion. If the bankrupt is incapable of completing the form he may apply to the official receiver to have someone else do it for him. In addition, the official receiver has powers within s. 288(3) to release the debtor from obligation to complete the statement of affairs or extend the time during which the form must be prepared.

The court will hear the petition dispassionately and may well take a dismal view of malicious attacks on a debtor. The rule clearly establishes a route which the creditor must take and goes as far as possible to ensure fair play for all concerned. As explained below, a common method whereby it is established that a debtor is indeed insolvent is for a creditor to serve on the debtor a formal written demand for repayment. Such demand must be served as to content and timing within the terms of the Act and the Rules and is known as a 'statutory demand'.

Make an effective proposal for payment and/or produce some money on account. Failure of the debtor to pay or compound the debt will give the court which hears the petition proof that the debtor is unable to pay his debts. Within 18 days from the service of the demand - but no later - the debtor may apply to court to have the demand set aside. Such application must be supported by an affidavit which must exhibit a copy of the demand and spell out the grounds on which the debtor is seeking to have the demand nullified.

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