Bankruptcy and Insolvency Act
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The Canadian Bankruptcy and Insolvency Act is "An Act Respecting Bankruptcy and Insolvency" that sets out the law on bankruptcy in Canada, and applies to both businesses and individuals. The legislation includes the duties and powers of the Office of the Superintendent of Bankruptcy, a federal agency responsible for ensuring that bankruptcies are administered in a fair and orderly manner.
The Bankruptcy and Insolvency Act is a federal statue that is uniformly applicable throughout Canada. Its purpose is not only to preserve as many of the debtor's assets as possible for the benefit of creditors, but also to rehabilitate debtors by forgiving the unpaid debt, thus removing an insurmountable burden and restoring then as productive members of society.
Significant amendments have recently been made to introduce a further objective to help viable businesses survive restructuring and to facilitate consumers in making arrangements with creditors and thus avoid actual bankruptcy. Other important amendments are anticipated.
The Bankruptcy and Insolvency Act does not apply to banks, insurance companies, trust companies, loan companies, and railways.
Farmers and fishers cannot be forced into bankruptcy, but they can make a voluntary assignment.
[edit] See also
[edit] External links
- Bankruptcy and Insolvency Act the full text of the act on the Canadian Department of Justice website
- Bankruptcy and Insolvency Act] at Canlii.org
- Bill C-12 An Act to amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005
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