Bankruptcy Law in Canada
If you are having financial trouble, there are many bankruptcy laws in Canada to help you get a fresh start. Some of the laws were established by the federal government and others were put into place by your province or territory. All the bankruptcy laws, though, work to preserve your rights and the rights of your creditors, or the people you borrowed money from.
There are two major pieces of legislation that govern bankruptcies in Canada – the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act.
The Bankruptcy and Insolvency Act
The Bankruptcy and Insolvency Act (BIA) was established by the federal government to help unfortunate, but honest people recover from their financial problems and have a fresh financial start. This law details the responsibilities and rights of all the people involved in solving debt problems – the Superintendent of Bankruptcy, the official receivers who represent the Superintendent of Bankruptcy, the court, licensed bankruptcy trustees, and you, the consumer.
The BIA governs all bankruptcies in Canada. For more information about the BIA, visit our page about the Bankruptcy and Insolvency Act. You can also read the BIA online on the federal government’s web site.
The Companies’ Creditors Arrangement Act
The Companies’ Creditors Arrangement Act (CCAA) is a federal bankruptcy law that governs insolvency of companies and corporations. Essentially, it preserves the rights of the company and creditors, or people they owe money to, and details the responsibilities of the court, the corporation, and the creditors.
It is separated into 3 parts:
- Compromises and Arrangements - governs agreements between the company and creditors for debt repayment
- Jurisdiction of Courts - governs the powers and responsibilities of the court, and discusses the court’s role in international insolvencies
- General - discusses how this act interacts with others and other information not covered in the other sections
For information about the CCAA, you can read the act online, or contact a licensed bankruptcy trustee in your area.
Each province has specific laws for dealing with bankruptcy and debt solutions. These laws often deal with what property you can keep when you go bankrupt, and how to handle your assets and income during the period of bankruptcy.
Below is a list of laws that affect bankruptcies in each province and territory. There are links to the laws online, as well as a link to a brief explanation that we have written to assist you. Remember, though, that these pages should not be used as a substitute for a licensed trustee, as this is information changes often and may be applied differently to your situation. You can contact us to arrange a free consultation with a licensed bankruptcy trustee in Canada to discuss your options and how these laws apply to you.
Contact a licensed bankruptcy trustee for more information
Every situation is unique and every province has its own laws, which do change from time to time. Contact a licensed bankruptcy trustee in your area to discuss your financial trouble. Make sure you get the right information so you can enjoy a healthy financial future.