Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)

Marginal note:Duties of administrator

66.14 The administrator shall, within ten days after filing a consumer proposal with the official receiver,

• (a) prepare and file with the official receiver a report in the prescribed form setting out

  • (i) the results of the investigation made under paragraph 66.13(2)(a),

  • (ii) the administrator’s opinion as to whether the consumer proposal is reasonable and fair to the consumer debtor and the creditors, and whether the consumer debtor will be able to perform it, and

  • (iii) [Repealed, 2005, c. 47, s. 49]

  • (iv) a list of the creditors whose claims exceed two hundred and fifty dollars; and

• (b) send to every known creditor, in the prescribed form and manner,

  • (i) a copy of the consumer proposal and a copy of the statement of affairs referred to in paragraph 66.13(2)(d),

  • (ii) a copy of the report referred to in paragraph (a),

  • (iii) a form of proof of claim as prescribed, and

  • (iv) a statement explaining that a meeting of creditors will be called only if required under section 66.15 and that a review of the consumer proposal by a court will be made only if it is requested in accordance with subsection 66.22(1).

Marginal note:Meeting of creditors

• 66.15 (1) The official receiver may, at any time within the forty-five day period following the filing of the consumer proposal, direct the administrator to call a meeting of creditors.

• Marginal note:Idem

  (2) The administrator shall call a meeting of creditors

  • (a) forthwith after being so directed by the official receiver under subsection (1), or

  • (b) at the expiration of the forty-five day period following the filing of the consumer proposal, if at that time creditors having in the aggregate at least twenty-five per cent in value of the proven claims have so requested,

  and any meeting of creditors must be held within twenty-one days after being called.

• Marginal note:Notice to be sent to creditors

  (3) The administrator shall, at least ten days before a meeting called pursuant to this section, send to the consumer debtor, every known creditor and the official receiver, in the prescribed form and manner, a notice setting out

  • (a) the time and place of the meeting;

  • (b) a form of proxy as prescribed; and

  • (c) such other information and documentation as is prescribed.

Marginal note:Chair of meeting

• 66.16 (1) The official receiver, or the nominee thereof, shall be the chair of a meeting called pursuant to section 66.15 and subsection 66.37(1) and shall decide any questions or disputes arising at the meeting, and any creditor may appeal any such decision to the court.

• Marginal note:Adjournment of meeting for further investigation and examination

  (2) Where the creditors by ordinary resolution at the meeting so require, the meeting shall be adjourned to such time and place as may be fixed by the chair

  • (a) to enable a further appraisal and investigation of the affairs and property of the consumer debtor to be made; or

  • (b) for the examination under oath of the consumer debtor or of such other person as may be believed to have knowledge of the affairs or property of the consumer debtor, and the testimony of the consumer debtor or such other person, if transcribed, shall be placed before the adjourned meeting or may be read in court on the application, if any, for the approval of the consumer proposal.

Marginal note:Creditor may indicate assent or dissent

• 66.17 (1) Any creditor who has proved a claim may indicate assent to or dissent from the consumer proposal in the prescribed manner to the administrator at or prior to a meeting of creditors, or prior to the expiration of the forty-five day period following the filing of the consumer proposal.

• Marginal note:Effect of assent or dissent

  (2) Unless it is rescinded, any assent or dissent received by the administrator at or before a meeting of creditors has effect as if the creditor had been present and had voted at the meeting.

Marginal note:Where consumer proposal deemed accepted

• 66.18 (1) Where, at the expiration of the forty-five day period following the filing of the consumer proposal, no obligation has arisen under subsection 66.15(2) to call a meeting of creditors, the consumer proposal is deemed to be accepted by the creditors.

• Marginal note:Idem

  (2) Where there is no quorum at a meeting of creditors, the consumer proposal shall be deemed to be accepted by the creditors.

Marginal note:Voting on consumer proposal

• 66.19 (1) At a meeting of creditors, the creditors may by ordinary resolution, voting all as one class, accept or refuse the consumer proposal as filed or as altered at the meeting or any adjournment thereof, subject to the rights of secured creditors.

• Marginal note:Related creditor

  (2) A creditor who is related to the consumer debtor may vote against but not for the acceptance of the consumer proposal.

• Marginal note:Voting by administrator

  (3) The administrator, as a creditor, may not vote on the consumer proposal.

Marginal note:Creditors may provide for supervision of consumer debtor’s affairs

66.2 The creditors, with the consent of the consumer debtor, may include such provisions or terms in the consumer proposal with respect to the supervision of the affairs of the consumer debtor as they may deem advisable.

Marginal note:Appointment of inspectors

66.21 The creditors may appoint up to three inspectors of the estate of the consumer debtor, who shall have the powers of an inspector under this Act, subject to any extension or restriction of those powers by the terms of the consumer proposal.

Marginal note:Application to court

• 66.22 (1) Where a consumer proposal is accepted or deemed accepted by the creditors, the administrator shall, if requested by the official receiver or any other interested party within fifteen days after the day of acceptance or deemed acceptance, forthwith apply to the court to have the consumer proposal reviewed.

• Marginal note:Where consumer proposal deemed approved by court

  (2) Where, at the expiration of the fifteenth day after the day of acceptance or deemed acceptance of the consumer proposal by the creditors, no obligation has arisen under subsection (1) to apply to the court, the consumer proposal is deemed to be approved by the court.

Marginal note:Procedure for application to court

66.23 Where the administrator applies to the court pursuant to subsection 66.22(1), the administrator shall

• (a) send a notice of the hearing of the application, in the prescribed manner and at least fifteen days before the date of the hearing, to the consumer debtor, to every creditor who has proved a claim and to the official receiver;

• (b) forward a copy of the report referred to in paragraph (c) to the official receiver at least ten days before the date of the hearing; and

• (c) at least two days before the date of the hearing, file with the court a report in the prescribed form on the consumer proposal and the conduct of the consumer debtor.

Marginal note:Court to hear report of administrator, etc.

• 66.24 (1) The court shall, before approving the consumer proposal, hear the report mentioned in paragraph 66.23(c) and, in addition, shall hear the official receiver, the administrator, the consumer debtor, any opposing, objecting or dissenting creditor or other interested party, and such further evidence as the court may require.

• Marginal note:Refusal to approve the consumer proposal

  (2) Where the court is of the opinion that the terms of the consumer proposal are not reasonable or are not fair to the consumer debtor and the creditors, the court shall refuse to approve the consumer proposal, and the court may refuse to approve the consumer proposal whenever it is established that the consumer debtor

  • (a) has committed any one of the offences mentioned in sections 198 to 200; or

  • (b) was not eligible to make a consumer proposal when the consumer proposal was filed with the official receiver.

• Marginal note:Proposal must comply with Act

  (3) The court shall refuse to approve a consumer proposal if it does not comply with subsections 66.12(5) and (6).

• Marginal note:Power of court

  (4) Subject to subsections (1) to (3), the court may either approve or refuse to approve the consumer proposal.

Marginal note:Withdrawal of consumer proposal

66.25 A consumer debtor may withdraw a consumer proposal

• (a) at any time before its deemed approval by the court by virtue of subsection 66.22(2), where no court review is requested; or

• (b) where a court review is requested, at any time before its actual approval or refusal by the court pursuant to section 66.24.

Marginal note:Where periodic payments not provided for

66.251 Where a proposal is approved or deemed approved by the court and the terms of the proposal do not provide for the distribution of available moneys at least once every three months, the administrator shall forthwith, upon ascertaining any change in the consumer debtor’s circumstances that leads the administrator to conclude, after consultation with the debtor where practicable, that such change could jeopardize the consumer debtor’s ability to meet the terms of the proposal, in writing, notify the official receiver and every known creditor of the change.

Marginal note:Payments to administrator

• 66.26 (1) All moneys payable under the consumer proposal shall be paid to the administrator and, after payment of all fees and expenses mentioned in paragraph 66.12(6)(b), the administrator shall distribute available moneys to the creditors in accordance with the terms of the consumer proposal.

• Marginal note:Deposit of moneys

  (2) In such circumstances as are specified in directives of the Superintendent and with the approval of the Superintendent, the administrator may deposit all moneys relating to the administration of consumer proposals in a single trust account.

• Marginal note:Section 147 applies

  (3) Section 147 applies, with such modifications as the circumstances require, to all distributions made to the creditors by the administrator pursuant to subsection (1).

Marginal note:Notifications

66.27 The administrator shall, within five days after

• (a) the refusal of a consumer proposal by the creditors,

• (b) the refusal of a consumer proposal by the court, and

• (c) the withdrawal of a consumer proposal by the consumer debtor,

so notify in the prescribed form and manner the consumer debtor, every known creditor and the official receiver.

Marginal note:Time for determining claims

• 66.28 (1) The time with respect to which the claims of creditors shall be determined is the time of the filing of the consumer proposal.

• Marginal note:On whom approval binding

  (2) Subject to subsection (2.1), a consumer proposal accepted, or deemed accepted, by the creditors and approved, or deemed approved, by the court is binding on creditors in respect of

  • (a) all unsecured claims; and

  • (b) secured claims for which proofs of claim have been filed in the manner provided for in sections 124 to 134.

• Marginal note:When consumer debtor is released from debt

  (2.1) A consumer proposal accepted, or deemed accepted, by the creditors and approved, or deemed approved, by the court does not release the consumer debtor from any particular debt or liability referred to in subsection 178(1) unless the consumer proposal explicitly provides for the compromise of that debt or liability and the creditor in relation to that debt or liability voted for the acceptance of the consumer proposal.

• Marginal note:Certain persons not released

  (3) The acceptance of a consumer proposal by a creditor does not release any person who would not be released under this Act by the discharge of the consumer debtor.

Marginal note:Administrator may issue certificate

• 66.29 (1) If a consumer proposal is approved or deemed approved by the court, the administrator may, if the administrator believes on reasonable grounds that the debtor owns land or other valuable property, issue a certificate in respect of the proposal, and may cause the certificate to be filed in any place where a certificate of judgment, writ of seizure and sale or other like document may be filed or where a legal hypothec of judgment creditors may be registered.

• Marginal note:Effect of filing certificate

  (2) A certificate filed under subsection (1) operates as a certificate of judgment, writ of execution or legal hypothec of judgment creditors until the proposal is fully performed.

Marginal note:Annulment of consumer proposal

• 66.3 (1) Where default is made in the performance of any provision in a consumer proposal, or where it appears to the court

  • (a) that the debtor was not eligible to make a consumer proposal when the consumer proposal was filed,

  • (b) that the consumer proposal cannot continue without injustice or undue delay, or

  • (c) that the approval of the court was obtained by fraud,

  the court may, on application, with such notice as the court may direct to the consumer debtor and, if applicable, to the administrator and to the creditors, annul the consumer proposal.

• Marginal note:Validity of things done

  (2) An order made under subsection (1) shall be made without prejudice to the validity of any sale, disposition of property or payment duly made, or anything duly done under or in pursuance of the consumer proposal, and notwithstanding the annulment of the consumer proposal, a guarantee given pursuant to the consumer proposal remains in full force and effect in accordance with its terms.

• Marginal note:Annulment for offence

  (3) A consumer proposal, although accepted or approved, may be annulled by order of the court at the request of the administrator or of any creditor whenever the consumer debtor is afterwards convicted of any offence under this Act.

• Marginal note:Notification of annulment

  (4) Where an order annulling the consumer proposal of a consumer debtor who is not a bankrupt has been made pursuant to this section, the administrator shall forthwith so inform the creditors and file a report thereof in the prescribed form with the official receiver.

• Marginal note:Annulment effect

  (5) Where a consumer proposal made by a bankrupt is annulled,

  • (a) the consumer debtor is deemed on the annulment to have made an assignment and the order annulling the proposal shall so state;

  • (b) the trustee who is the administrator of the proposal shall, within five days after the order is made, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, notwithstanding section 14, affirm the appointment of the trustee or appoint another trustee in lieu of that trustee; and

  • (c) the trustee shall forthwith file a report thereof in the prescribed form with the official receiver, who shall thereupon issue a certificate of assignment in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed pursuant to section 49.