How the Bankruptcy and Insolvency Act can work for you
The Bankruptcy and Insolvency Act (BIA) regulates the law on bankruptcy and insolvency in Canada.
The act details how different legal options will work, while defining the role of the Superintendent of Bankruptcy, their representatives– official receivers, the courts, Trustees, creditors, and consumers have.
The Act was established by the federal government in Canada to support citizens amidst their financial difficulties.
Also known as the ‘Bankruptcy Act’, it was brought in to protect the rights of both consumers and creditors, while informing Trustees and courts about their powers, responsibilities, and duties.
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How the Bankruptcy and Insolvency Act is Organized
The BIA is arranged into fourteen different parts.
- Administrative Officials
Dealing with the responsibilities of the Superintendent of Bankruptcy, Official Receivers, and the Trustees.
- Bankruptcy Orders and Assignments
Handles the Acts of bankruptcy and with applications for bankruptcy.
Deals with proposals to creditors which include consumer proposals. It discusses what the proposals are, and defines the roles of both the consumer and the Trustee.
- Property of the Bankrupt
Organizes how the property of the consumer is dealt with.
- Administration of Estates
Organizes how assets, property, money (estates) of the consumer are handled by creditors and trustees.
Outlines the rights, responsibilities, and duties of the consumer- and how the law will help them.
- Courts and Procedures
Determines the duties, roles, and authorities of the courts.
Describes the consequences of not following the guidelines outlining the laws and procedures of the BIA.
- Miscellaneous Provisions
Handles any other items that do not fit in with any other category- such as the rights of the banks and any associated accounts.
- Orderly Payment of Debt
Discusses the alternatives to bankruptcy such as the Orderly Payment of Debts (prior to bankruptcy)
- Secured Creditors and Receivers
Manages how property is dealt with through secure creditors.
- Security Firm Bankruptcy
Discloses how to deal with security firms in bankruptcies.
- International Insolvencies
Outlines how to handle insolvencies that have been filed internationally
- General Rules
The outlining and defining of several other aspects of the process of bankruptcy.
What other laws deal with Bankruptcy, aside from the Bankruptcy and Insolvency Act?
Each providence has its own legislation related to bankruptcy, which is used in addition to BIA.
Should there ever be a time where there is ever a dispute between federal and provincial laws- this is where the laws of the BIA will take precedence.
This Act details the way in which an organization would handle any debt problems.
Can I get any Further Information?
For more information about the BIA, and indeed any other bankruptcy-related laws, or to find a Trustee in Canada, contact Bankruptcy Canada- Canada’s Bankruptcy experts on (877) 879-4770 where our experts are available 24/7.
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