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:

PartTitleWhat it deals with
1Administrative OfficialsResponsibilities of the Superintendent of Bankruptcy (SB), the official receivers (representatives of the SB), and the trustees
2Bankruptcy Orders and AssignmentsActs of bankruptcy and how to apply for bankruptcy
3ProposalsProposals to your creditors, including consumer proposals; discusses what they are and the roles of the trustee and you, the consumer
4Property of the BankruptHow your property is dealt with
5Administration of EstatesHow your estate(assets, property, money) will be handled by creditors and trustees
6BankruptsYour rights, responsibilities, and duties, and how the law will help you
7Courts and ProceduresThe court’s duties, roles, and authority
8OffencesThe consequences of not following the laws and procedures of the BIA
9Miscellaneous ProvisionsItems that do not fit in any other category, like the rights of banks
10Orderly Payment of DebtsDiscussion of an alternative to bankruptcy – an Orderly Payment of Debt
11Secured Creditors and ReceiversHow property is handled with secured creditors
12Security Firm BankruptciesHow to deal with security firms in bankruptcies
13International InsolvenciesHow to deal with the international filing of bankruptcies
14General RulesHow 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.

For more information
Bankruptcy and Insolvency Act, General Rules
Companies’ Creditors Arrangement Act (CCAA)
Provincial Bankruptcy Laws