BANKRUPTCY AND INSOLVENCY ACT CANADA: BANKRUPTCY
LAW FAQ BANKRUPTCY ACT CANADA The purpose of this video is to list the 7
most frequently asked questions I am asked about the Bankruptcy and Insolvency Act (Canada). 1. Is there a book that explains the various
topics and sections of the Act? Yes there is. The book is the Annotated Bankruptcy
and Insolvency Act Canada. It has the complete Act and its rules and regulations. In addition,
the annotations provide explanations on the application of each section as well as listing
of decided cases to support the explanations. 2. Can I look up the Act and decided cases
somewhere online for free? Yes. The Canadian Legal Information Institute
(CanLII) operates a website. It contains what it calls the Bankruptcy and Insolvency Act
Canada CanLII. CanLII can also be used to search bankruptcy legal decisions in both
English and French. 3. Where can I find a listing of the many
forms that a licensed insolvency trustee uses? The best place to find all of the Bankruptcy
and Insolvency Act Canada forms is on the website operated by the Government of Canada,
Office of the Superintendent of Bankruptcy. All the forms are listed. They are also downloadable
as Bankruptcy and Insolvency Act Canada pdf forms. 4. Can I perform a Bankruptcy and Insolvency
Act Canada search? People ask me if they can perform a Bankruptcy
and Insolvency Act Canada search. What they really mean is can they perform a search to
determine if a specific person or company did a personal or corporate filing under the
Canadian bankruptcy system. The answer to this question is yes. The Office of the Superintendent of Bankruptcy
operates a database for people to search the bankruptcy and insolvency records in Canada. 5. What are the Bankruptcy and Insolvency
Act Canada regulations? The Bankruptcy and Insolvency Act Canada regulations,
otherwise known as the bankruptcy rules, form part of the Act itself. The pure legislation
contained in the various sections of the Act is just that; the legislation. However, there
are practical considerations which also need clarification. Such clarification is found
in the Rules contained in the Bankruptcy and Insolvency Act (Canada). 6. Are all unsecured creditors treated equally
in a personal or corporate bankruptcy? The answer is both no and yes. There are two
types of unsecured creditors; preferred unsecured and ordinary unsecured. All ordinary unsecured creditors ARE treated
equally. Their claims rank equally. If there is a dividend to be paid by the licensed insolvency
trustee to the ordinary unsecured creditors, then they will all receive their pro rata
share. The preferred unsecured creditors ARE NOT
treated equally. Their treatment is found in the Bankruptcy and Insolvency Act Canada
section 136. This section sets out the scheme of distribution for the priority of claims.
Preferred creditors ALWAYS get paid BEFORE ORDINARY creditors, even though they both
are unsecured. 7. In a personal bankruptcy, are there any
claims not discharged upon the person receiving their absolute discharge from bankruptcy? Yes. The list of claims not discharged in
a person’s bankruptcy are listed in the Bankruptcy and Insolvency Act Canada section
178. Such debts are: a fine, penalty, restitution order or other
order similar in nature imposed by a court in respect of an offence, or any debt arising
out of a recognizance or bail; any award of damages by a court in civil proceedings
in respect of bodily harm intentionally inflicted, sexual assault, or wrongful death as a result
of such an act; a debt or liability for alimony or support
under a court order or valid written agreement; the debt or liability arising out of fraud,
embezzlement, misappropriation or defalcation while acting in a fiduciary capacity;
debts or liabilities resulting from obtaining property or services by false pretences or
fraudulent misrepresentation; liability for the dividend that a creditor
would have been entitled to receive on any provable claim not disclosed to the trustee,
unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable
action to prove a claim; any debt or obligation of a loan made under
the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment
of a province that provides for loans or guarantees of loans to students where the date the person
ceased being a full or part-time student was within seven years before the date of bankruptcy; I hope you have a better understanding of
the 7 most asked questions about the Government of Canada Bankruptcy and Insolvency Act. The
Act deals with bankruptcy insolvency issues for bankruptcy law both personal and corporate. If you have any questions about how the Canadian
bankruptcy system works or feel that someone you know could benefit from a free initial
consultation with a professional licensed insolvency trustee, feel free to contact the
Ira Smith Team.