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There are two statutes which set out the law of bankruptcy and insolvency law in Canada. They are the Bankruptcy and Insolvency Act (“BIA”) and the Companies Creditors Arrangement Act (“CCAA”). The BIA and the CCAA are very different in approach. The BIA contains 275 sections and is intended to be a complete code for bankruptcies.
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- What A Stay of Proceedings Will Stop
- What A Stay of Proceedings Will Not Stop
- How Bankruptcy Affects Your Assets
- Your Responsibilities Under Bankruptcy
Regardless of the process you choose, a stay of proceedings will be filed on your behalf. You will receive creditor protection, which means that creditors can’t take any further legal action against you. Essentially, a stay of proceedings tells creditors that you are working with an LIT to resolve your debt, and so legal actions against you should ...
A stay of proceedings doesn’t cover everything. If you have a car loan from a secured creditor, that creditor can take the vehicle. If you make spousal or child support, you must continue to do so. If you have certain fines or penalties, those are not forgiven. An LIT will review your personal finances and determine what debts you carry and what ca...
During a bankruptcy process, an LIT will make an electronic filing of bankruptcy documents and any stay of proceedings to the government to get things underway. Your assets will be reviewed, and an LIT will determine if they’re included or exempt from action, such as being repossessed or sold to cover your debts. What is exempt varies depending on ...
If you file for bankruptcy, you must provide monthly income statements so an LIT can determine whether bankruptcy law requires you to make additional payments to your creditors. You are required to attend two financial counselling sessions with an LIT or a licensed credit counsellor. During these sessions you and the counsellor will review the caus...
The Purpose of the Bankruptcy and Insolvency Act. The Bankruptcy and Insolvency Act is a law implemented to safeguard all parties involved in a consumer proposal or bankruptcy — including the debtor, creditors, and the Licensed Insolvency Trustee, who manages the process.
Jan 15, 2015 · The purpose of the consumer proposal sections is to permit consumer proposals to be handled quickly, efficiently and with a minimum of administration and attendant expense. Negotiations, correspondence and discussion must be carried on within a very narrow time frame.2
Canadian insolvency law provides for summary bankruptcy (personal bankruptcy), business bankruptcy and consumer proposals, which is an offer to your creditors to repay a portion of what you owe, to extend the time you have to repay your debt, or a combination of both of these that is conducted under the BIA and administrated by a licensed ...
Jun 29, 2023 · Purpose of the Bankruptcy and Insolvency Act. The BIA’s main purpose is to help the bankrupt or insolvent company (debtor-company) and its creditors by ensuring that the debtor-company’s rights are protected over the bankruptcy or insolvency proceedings.
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Nov 20, 2023 · But where do you start? Here are answers to the top 10 questions Canadians ask about bankruptcy. 1. What happens if I declare personal bankruptcy? While it is important to understand the full bankruptcy process in Canada, you can expect to: Online: Sign in to your RBC Online Banking account and click on your loan or line of credit.
