ontario bankruptcy
I sued a corporation that declared bankruptcy, but it got acquired. Can I claim from acquiring corporation?
<p>I hope you're safe and good in pandemic.</p>
<p>In Dec. 2019, I filed claim online with Ontario Small Claims Court against <a href="https://farbergroup.com/engagements/barrymorefurniture/" rel="nofollow noreferrer">Barrymore Furniture Co. Ltd.</a> for $7000. Just ask if you want me to summarize Statement of Claim, but I don't think it's relevant now. I didn't know that</p>
<blockquote>
<p>On November 29, 2019, Barrymore Furniture Co. Ltd. (“<strong>Barrymore</strong>” or the “<strong>Company</strong>”) filed a Notice of Intention to Make a Proposal (the “<strong>NOI</strong>”) under Section 50.4 of the _Bankruptcy and Insolvency Act_¸ R.S.C 1985, c. B-3, as amended (the “<strong>BIA</strong>”) and A. Farber &amp; Partners Inc. (“<strong>Farber</strong>”) was appointed as trustee (the “<strong>Proposal Trustee</strong>”).</p>
</blockquote>
<blockquote>
<p>On January 17, 2020, Barrymore ceased operations and filed an assignment in bankruptcy. Farber was appointed as Bankruptcy Trustee by the Official Receiver (the “<strong>Bankruptcy Trustee</strong>”), subject to affirmation by the unsecured creditors at the first meeting of creditors which is scheduled for February 6, 2020 at 10:00AM at A. Farber &amp; Partners Inc., LIT, 150 York Street, Suite 1600, in Toronto, Ontario.</p>
<p>On January 21, 2020, the Bankruptcy Trustee obtained an order (the “<strong>January 2020 Order</strong>”) from the Ontario Superior Court of Justice (Commercial List) (the “<strong>Court</strong>”) authorizing the Bankruptcy Trustee to sell Barrymore’s assets and, if necessary, disclaim the lease for the Barrymore’s premises, before the first meeting of creditors and the appointment of inspectors. A copy of the January 2020 Order is posted below.</p>
</blockquote>
<p>On Mar. 16 2020, <a href="https://www.instagram.com/p/B9y6Wc3p9s7/" rel="nofollow noreferrer">Creative Custom Furnishings acquired &quot;the design, intellectual properties and trademark of the Barrymore Company.&quot;</a>. I call them CCF. Can I claim that $7000 <a href="https://www.hosseinilaw.com/types-of-damages-in-civil-litigation//" rel="nofollow noreferrer">Compensatory Damages</a>
from CCF?</p>
<p>Thank you! Regards,
Liska</p>

<h2>No</h2>
<p>The Bankruptcy Trustee sold the <strong>assets</strong> of Barrymore - the liabilities (including your unproven debt) remains with Barrymore. Think of it this way - if I buy your car today, I'm not responsible for the guy you ran over last week.</p>
<p>When all the assets of Barrymore have been liquidated the trustee will pay the creditors in the <a href="https://www.mondaq.com/canada/insolvencybankruptcy/571982/priority-of-creditors-in-bankruptcy" rel="nofollow noreferrer">priority</a> laid out in the <em>Bankruptcy and Insolvency Act</em>:</p>
<ol>
<li>Secured creditors</li>
<li>Trustee's fees</li>
<li>A levy on dividends (whatever that is)</li>
<li>Preferred unsecured creditors (e.g. employee claims)</li>
<li>Unsecured creditors</li>
</ol>
<p>You are in category 5; once the Trustee admits your claim or a court rules in your favor. In most liquidations, the amount available for unsecured creditors is very small or zero - dividends of 0-3c in the dollar are typical and can take up to a decade to flow through.</p>
