bankruptcy cases
In a canadian bankruptcy case, does a judgment turn an unsecured creditor into a secured creditor?
I am a “creditor” and have a judgment against a US company (with a sister company in Canada). The Canadian corporation filed bankruptcy, which I am told holds true for the US location. Does this judgment make me a secured creditor, entitled to assets? Even after the Canadian bankruptcy?
A judgment is an unsecured debt. If you also obtained an order/writ of seizure but did not complete the process, then you are probably out of luck. The assets of the bankrupt now vest with the trustee, and assets with a registered security against them remain secured by the creditor that registered their security.
US Debt? There are treaties in place, but I don’t know enough about them to comment. You may be able to bring forth an action and obtain a new judgment in the US court if the US branch is not bankrupt (did they file bankruptcy in the US separate from the Canadian Division?). You would have to ask a US Bankruptcy lawyer.
Bottom line, you should probably evaluate the costs of attempting to get money from what may be a tapped out source. Can’t get blood from a stone, and can’t collect if there isn’t any money.
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