The Bankruptcy and Insolvency Act
How it works for you
The federal government established The Bankruptcy and Insolvency Act (BIA) to help unfortunate, honest citizens with their financial trouble. Sometimes referred to as the “bankruptcy act,” it was created to protect the rights of you and your creditors, and informs trustees and the court of their responsibilities, powers, and duties.
What is in the Bankruptcy and Insolvency Act?
The bankruptcy act details how different financial options work legally, and defines the roles that the Superintendent of Bankruptcy, the representatives of the Superintendent of Bankruptcy (official receivers), the court, trustees, creditors, and you, the consumer, have.
The BIA is organized into 14 parts:
|Part||Title||What it deals with|
|1||Administrative Officials||Responsibilities of the Superintendent of Bankruptcy (SB), the official receivers (representatives of the SB), and the trustees|
|2||Bankruptcy Orders and Assignments||Acts of bankruptcy and how to apply for bankruptcy|
|3||Proposals||Proposals to your creditors, including consumer proposals; discusses what they are and the roles of the trustee and you, the consumer|
|4||Property of the Bankrupt||How your property is dealt with|
|5||Administration of Estates||How your estate(assets, property, money) will be handled by creditors and trustees|
|6||Bankrupts||Your rights, responsibilities, and duties, and how the law will help you|
|7||Courts and Procedures||The court’s duties, roles, and authority|
|8||Offences||The consequences of not following the laws and procedures of the BIA|
|9||Miscellaneous Provisions||Items that do not fit in any other category, like the rights of banks|
|10||Orderly Payment of Debts||Discussion of an alternative to bankruptcy – an Orderly Payment of Debt|
|11||Secured Creditors and Receivers||How property is handled with secured creditors|
|12||Security Firm Bankruptcies||How to deal with security firms in bankruptcies|
|13||International Insolvencies||How to deal with the international filing of bankruptcies|
|14||General Rules||How to handle different aspects of the bankruptcy process|
Are there any other laws that deal with bankruptcy besides the Bankruptcy and Insolvency Act?
On top of the bankruptcy act, every province also has their own bankruptcy legislation. If there is ever a dispute between the federal and provincial laws, the federal laws in the BIA will take precedence.
Another piece of legislation that deals with bankruptcies and insolvencies is the Companies’ Creditors Arrangement Act (CCAA), which details how a company or corporation would deal with their debt trouble.
Where can I get more information about the Bankruptcy and Insolvency Act or other bankruptcy laws?
For more information about the BIA, click on the links below. If you need more information about other bankruptcy laws, you can visit our Bankruptcy Law page. You can also contact us with any questions you might have.