The Bankruptcy and Insolvency Act

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.

  1. Administrative Officials
    Dealing with the responsibilities of the Superintendent of Bankruptcy, Official Receivers, and the Trustees.
  2. Bankruptcy Orders and Assignments
    Handles the Acts of bankruptcy and with applications for bankruptcy.
  3. Proposals
    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.
  4. Property of the Bankrupt
    Organizes how the property of the consumer is dealt with.
  5. Administration of Estates
    Organizes how assets, property, money (estates) of the consumer are handled by creditors and trustees.
  6. Bankrupts
    Outlines the rights, responsibilities, and duties of the consumer- and how the law will help them.
  7. Courts and Procedures
    Determines the duties, roles, and authorities of the courts.
  8. Offences
    Describes the consequences of not following the guidelines outlining the laws and procedures of the BIA.
  9. 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.
  10. Orderly Payment of Debt
    Discusses the alternatives to bankruptcy such as the Orderly Payment of Debts (prior to bankruptcy)
  11. Secured Creditors and Receivers
    Manages how property is dealt with through secure creditors.
  12. Security Firm Bankruptcy
    Discloses how to deal with security firms in bankruptcies.
  13. International Insolvencies
    Outlines how to handle insolvencies that have been filed internationally
  14. 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.

The Companies’ Creditors Arrangement Act (CCAA)  also deals with bankruptcies and insolvencies.

This Act details the way in which an organization would handle any debt problems.

Can I get any Further Information about the Bankruptcy and Insolvency Act?

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.

Canadian Bankruptcies

How to File for Bankruptcy
What is Bankruptcy?
Bankruptcy FAQs
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?

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