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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:
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:
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:
Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.
In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be insolvent. There are two forms: cash-flow insolvency and balance-sheet insolvency.
A trustee in bankruptcy is an entity, often an individual, in charge of administering a bankruptcy estate.
Consumer bankruptcy in Canada is governed by the Bankruptcy and Insolvency Act ("BIA"). The legislation is complemented by regulations, as well as directives from the Office of the Superintendent of Bankruptcy that provide guidelines to trustees in bankruptcy on various aspects of the BIA.
The Bankruptcy and Insolvency Act is one of the statutes that regulates the law on bankruptcy and insolvency in Canada. It governs bankruptcies, consumer and commercial proposals, and receiverships in Canada.
An unfair preference is a legal term arising in bankruptcy law where a person or company transfers assets or pays a debt to a creditor shortly before going into bankruptcy, that payment or transfer can be set aside on the application of the liquidator or trustee in bankruptcy as an unfair preference or simply a preference.
Bankruptcy in Irish Law is a legal process, supervised by the High Court whereby the assets of a personal debtor are realised and distributed amongst his or her creditors in cases where the debtor is unable or unwilling to pay his debts.
Commercial insolvency in Canada has options and procedures that are distinct from those available in consumer insolvency proceedings. It is governed by the following statutes:
The Companies' Creditors Arrangement Act is a statute of the Parliament of Canada that allows insolvent corporations owing their creditors in excess of $5 million to restructure their business and financial affairs.
Sun Indalex Finance, LLC v United Steelworkers, 2013 SCC 6, arising from the Ontario courts as Re Indalex Limited, is a decision of the Supreme Court of Canada that deals with the question of priorities of claims in proceedings under the Companies' Creditors Arrangement Act, and how they intersect with the fiduciary duties employers have as administrators of pension plans.
Century Services Inc v Canada (AG) is a decision of the Supreme Court of Canada that describes the interrelationship between the Companies' Creditors Arrangement Act and the Bankruptcy and Insolvency Act in governing Canadian insolvency law, and how other federal statutes are accordingly construed.
The Winding-up and Restructuring Act ("WURA") is a statute of the Parliament of Canada that provides for the winding up of certain corporations and the restructuring of financial institutions. It was passed in 1985, and has been amended since. Predecessors of the act date back to 1882.
Canadian corporate law concerns the operation of corporations in Canada, which can be established under either federal or provincial authority.
The Wage Earner Protection Program Act, is an act of the Parliament of Canada. It was part of a package of reforms to the insolvency law of Canada that were brought into force in 2008 and 2009 to compensate employees of companies made bankrupt or placed into receivership under the Bankruptcy and Insolvency Act. It was subsequently expanded in 2011 to cover employees who lose their jobs when their employer's attempt at restructuring subsequently ends in bankruptcy or receivership.
Reference Re Companies' Creditors Arrangement Act is a decision of the Supreme Court of Canada on the constitutionality of the Companies' Creditors Arrangement Act as part of the bankruptcy and insolvency jurisdiction of the Parliament of Canada.
Cayman Islands bankruptcy law is principally codified in five statutes and statutory instruments:
Anguillan bankruptcy law regulates the position of individuals and companies who are unable to meet their financial obligations.
The Farmers' Creditors Arrangement Act, was an Act of the Parliament of Canada that attempted to remedy a wave of insolvencies that occurred among Canadian farmers during the Great Depression. Originally framed to deal with such problems nationwide, it was gradually reduced in scope, and was reenacted in 1943 to apply solely to farmers in the Prairie Provinces.
The Farm Debt Mediation Act ("FDMA") is an act of the Parliament of Canada that enables a debt advisory service to insolvent farmers by Agriculture and Agri-Food Canada, as well as certain protective provisions available to help facilitate mediation with creditors while allowing such farmers to continue their operations.
Chandos Construction Ltd v Deloitte Restructuring Inc, 2020 SCC 25 is a landmark case of the Supreme Court of Canada concerning the position of the anti-deprivation rule within Canadian insolvency law. It held that, because of differences in Canadian law, the rule has wider application relative to the English rule applied by the UK Supreme Court in Belmont Park Investments Pty Ltd v BNY Corporate Trustee Services Ltd.