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Section 74: Unpaid balance of debt

Insolvency Act · PART II: BANKRUPTCY AND ALTERNATIVES

consolidated text (as at 2017, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

74. Unpaid balance of debt (1) A bankrupt who makes a composition with his creditors remains liable for the unpaid balance of a debt where— (a) the bankrupt, by means of fraud— (i) incurred or increased the debt; or (ii) on or before the date of the composition, obtained forbearance on the debt; and (b) the creditor who has been defrauded has not agreed to the composition. (2) In subsection (1) (b), a creditor does not agree to the composition merely by proving the debt and accepting payment of a distribution of the assets in the estate.

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