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

Act current to 2016-04-12 and last amended on 2015-02-26. Previous Versions

Marginal note:Duties of administrator

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    • (iii) [Repealed, 2005, c. 47, s. 49]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

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 47;
  • 2005, c. 47, s. 49.
Marginal note:Meeting of creditors
  •  (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.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 48.
Marginal note:Chair of meeting
  •  (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.

  • 1992, c. 27, s. 32;
  • 2005, c. 47, s. 123(E).
Marginal note:Creditor may indicate assent or dissent
  •  (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.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 49;
  • 2005, c. 47, s. 50.
Marginal note:Where consumer proposal deemed accepted
  •  (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.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 50.
Marginal note:Voting on consumer proposal
  •  (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.

  • 1992, c. 27, s. 32.
Marginal note:Creditors may provide for supervision of consumer debtor’s affairs

 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.

  • 1992, c. 27, s. 32.
Marginal note:Appointment of inspectors

 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.

  • 1992, c. 27, s. 32.
Marginal note:Application to court
  •  (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.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 51.
Marginal note:Procedure for application to court

 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.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 52.
Marginal note:Court to hear report of administrator, etc.
  •  (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.

  • 1992, c. 27, s. 32.
 
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