The BIA is sometimes simply called the bankruptcy act, and it protects you and your rights, as well as the rights of the creditors, and gives the courts and trustees instructions on their duties, powers and responsibilities when helping a person file bankruptcy.
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The BIA governs all Canadian bankruptcies, consumer and commercial proposals and receiverships, and the Bankruptcy and Insolvency Act also is responsible for governing the Office of the Superintendent of Bankruptcy (OSB).
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History of the Bankruptcy and Insolvency Act
Enacted in 1869, the first Canadian bankruptcy act was known as “An Act respecting Insolvency” and only covered traders.
It was not until 1919, with the Bankruptcy Act of 1919, until bankruptcy was available for all individuals, corporations, and other entities.
The Bankruptcy and Insolvency Act that we know today was not enacted until 1992.
In 1992, when the Act was renamed the Bankruptcy and Insolvency Act provisions for consumer proposals were made.
The Act was again updated in 1998 to deal with the discharge of student loan debt in insolvency.
The last update to the BIA went into force in 2009, which established the Wage Earner Protection Program, which allows compensation to employees of bankrupt companies or companies that were placed in receivership under the Bankruptcy and Insolvency Act.
What Parts of the Bankruptcy and Insolvency Act are There?