Insolvency law of Canada

Insolvency

Processes
Administration Bankruptcy Chapter 7 (US) CVA Conservatorship Dissolution Examinership IVA Liquidation Provisional liquidation Receivership
Officials
Insolvency practitioner Tribunal Regulatory agency Liquidator Referee in Bankruptcy Trustee in bankruptcy
Claimants
Creditor Preferential creditor Secured creditor Unsecured creditor
Restructuring
Administration (UK) Chapter 11 (US) Cram down Restructuring Scheme of arrangement
Avoidance regimes
Fraudulent conveyance Undervalue transaction Unfair preference Voidable floating charge
Offences
Fraudulent trading Misfeasance Trading while insolvent Wrongful trading
Security
Floating charge Lien Mortgage Second lien loan Security interest
International
Chapter 15 (US) Cross-border insolvency Insolvency Regulation UNCITRAL Model Law
By country
Anguilla Australia BVI Canada Cayman China Hong Kong India Ireland Russia South Africa Switzerland United Kingdom United States
Other
Anti-deprivation rule Bankruptcy alternatives Creditors' rights Chapter 9 (US) Debtor Default Financial distress History of bankruptcy law List of bankrupts Pari passu Pre-packaged insolvency Sovereign default Subordination
v t e

The Parliament of Canada has exclusive jurisdiction to regulate matters relating to bankruptcy and insolvency, by virtue of Section 91(2) of the Constitution Act, 1867. It has passed the following statutes as a result:

The Bankruptcy and Insolvency Act ("BIA") ^[1]
The Companies' Creditors Arrangements Act ("CCAA") ^[2]
The Farm Debt Mediation Act ^[3]
The Wage Earner Protection Program Act ^[4]
The Winding-Up and Restructuring Act (which essentially applies only to financial institutions under federal jurisdiction) ^[5]

In applying these statutes, provincial law has important consequences. Section 67(1)(b) of the BIA provides that "any property that as against the bankrupt is exempt from execution or seizure under any laws applicable in the province within which the property is situated and within which the bankrupt resides".

Provincial legislation under the property and civil rights power of the Constitution Act, 1867 regulates the resolution of financial difficulties that occur before the onset of insolvency. Notable legislation is in effect for governing:

creation of security interests (with notable caveats)^[6]^[7]
absconding debtors^[8]
bulk sales (in Ontario only)^[9]
fraudulent conveyances^[10]
relief of creditors^[11]
seizure of assets^[12]
assignments and preferences^[13]

Administration of insolvency law

The Office of the Superintendent of Bankruptcy is charged with the administration of the BIA and the CCAA.^[14] All records relating to matters under those Acts are accessible at their website.^[15] The Office also licenses insolvency trustees (LITs), who are authorized to:

administer estates of bankrupts
handle consumer and commercial proposals in order to forestall an assignment in bankruptcy
act as a monitor under the CCAA
act as a receiver under Part XI of the BIA, to take possession and administer property as a consequence of provisions in a security agreement or by virtue of any federal or provincial law that authorizes the appointment of a receiver or receiver-manager

References

^ "Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)". Retrieved August 25, 2011.
^ "Companies' Creditors Arrangements Act (R.S.C., 1985, c. C-36)". Retrieved August 25, 2011.
^ "Farm Debt Mediation Act (S.C. 1997, c. 21)". Retrieved August 25, 2011.
^ "Wage Earner Protection Program Act (S.C. 2005, c. 47, s.1))". Retrieved August 25, 2011.
^ "Winding-up and Restructuring Act (R.S.C., 1985, c. W-11)". Retrieved August 25, 2011.
^ John R. Sandrelli, Christopher J. Ramsay and Anjili I. Bahadoorsingh (2002-09-18). "Remedies under Security Interests in Canada: An Overview" (PDF). Fraser Milner Casgrain. Archived from the original (PDF) on 2012-03-29. Retrieved 2011-09-13.
^ "Federal Security Interests: Contract #99-08-2" (PDF). Fraser Milner Casgrain under contract to the Law Commission of Canada. June 2000. Retrieved 2011-09-14.
^ "Absconding Debtors Act (Ontario), R.S.O. 1990, c. A.2". 24 July 2014.
^ "Bulk Sales Act (Ontario), R.S.O. 1990, c. B.14". 24 July 2014.
^ "Fraudulent Conveyances Act (Ontario), R.S.O. 1990, c. F.29". 24 July 2014.
^ "Creditors' Relief Act, 2010 (Ontario), S.O. 2010, c. 16, Sch. 4". 24 July 2014.
^ "Execution Act (Ontario), R.S.O. 1990, c. E.24". 24 July 2014.
^ "Assignments and Preferences Act (Ontario), R.S.O. 1990, c. A.33". Retrieved 2011-09-13.
^ "Basic Concepts". Office of Superintendent of Bankruptcy. 15 September 2005. Retrieved August 25, 2011.
^ "Office of the Superintendent of Bankruptcy Canada - Home". 19 August 2002. Retrieved August 25, 2011.

v t e Bankruptcy in the Americas
United States and Canada Latin America and the Caribbean
Latin America Hispanic North America Northern Caribbean Central America South America
Sovereign states	Antigua and Barbuda Argentina Bahamas Barbados Belize Bolivia Brazil Canada Chile Colombia Costa Rica Cuba Dominica Dominican Republic Ecuador El Salvador Grenada Guatemala Guyana Haiti Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Suriname Trinidad and Tobago United States Uruguay Venezuela
Dependencies and other territories	Anguilla Aruba Bermuda Bonaire British Virgin Islands Cayman Islands Curaçao Falkland Islands French Guiana Greenland Guadeloupe Martinique Montserrat Puerto Rico Saba Saint Barthélemy Saint Martin Saint Pierre and Miquelon Sint Eustatius Sint Maarten South Georgia and the South Sandwich Islands Turks and Caicos Islands U.S. Virgin Islands