The Insolvent Estate

The insolvent estate is comprised of the property which is the subject matter of an insolvency proceeding. It is important that there is clarity in this respect. If the proceeding is distributive, the estate is the property which will be realized for the benefit of the creditors; if it is reorganizational, the estate is the property which will be protected by any stay and which may be the subject of the reorganization. The Act does not define the insolvent estate for the purposes of its corporate insolvency provisions; the crucial term used by the Act is ‘property’.