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:Withdrawal of consumer proposal

 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.

  • 1992, c. 27, s. 32.
Marginal note:Where periodic payments not provided for

 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.

  • 1997, c. 12, s. 53.
Marginal note:Payments to administrator
  •  (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).

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 54.
Marginal note:Notifications

 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.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 55.
Marginal note:Time for determining claims
  •  (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.

  • 1992, c. 27, s. 32;
  • 2005, c. 47, s. 51;
  • 2007, c. 36, s. 29.
Marginal note:Administrator may issue certificate
  •  (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.

  • 1992, c. 27, s. 32;
  • 2004, c. 25, s. 40.
Marginal note:Annulment of consumer proposal
  •  (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.

  • 1992, c. 27, s. 32;
  • 1997, c. 12, s. 56.
Marginal note:Deemed annulment — default of payment
  •  (1) Unless the court has previously ordered otherwise or unless an amendment to the consumer proposal has previously been filed, a consumer proposal is deemed to be annulled on

    • (a) in the case when payments under the consumer proposal are to be made monthly or more frequently, the day on which the consumer debtor is in default for an amount that is equal to or more than the amount of three payments; or

    • (b) in the case when payments under the consumer proposal are to be made less frequently than monthly, the day that is three months after the day on which the consumer debtor is in default in respect of any payment.

  • Marginal note:Deemed annulment — amendment withdrawn or refused

    (2) If an amendment to a consumer proposal filed before the deemed annulment of the consumer proposal under subsection (1) is withdrawn or refused by the creditors or the court, the consumer proposal is deemed to be annulled at the time that the amendment is withdrawn or refused.

  • Marginal note:Duties of administrator in relation to deemed annulment

    (3) Without delay after a consumer proposal is deemed to be annulled, the administrator shall

    • (a) file with the official receiver a report in the prescribed form in relation to the deemed annulment; and

    • (b) send a notice to the creditors informing them of the deemed annulment.

  • Marginal note:Effects of deemed annulment — consumer proposal made by a bankrupt

    (4) If a consumer proposal made by a bankrupt is deemed to be annulled,

    • (a) the consumer debtor is deemed to have made an assignment on the day on which the consumer proposal is deemed to be annulled;

    • (b) the trustee who is the administrator of the consumer proposal shall, within five days after the day on which the consumer proposal is deemed to be annulled, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, despite section 14, affirm the appointment of the trustee or appoint another trustee in lieu of that trustee; and

    • (c) the trustee shall, without delay, file with the official receiver, in the prescribed form, a report of the deemed annulment and the official receiver shall, without delay, issue a certificate of assignment, in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed under section 49.

  • Marginal note:Validity of things done before deemed annulment

    (5) A deemed annulment of a consumer proposal does not prejudice the validity of any sale or disposition of property or payment duly made, or anything duly done under or in pursuance of the consumer proposal and, despite the deemed annulment, a guarantee given under the consumer proposal remains in full force and effect in accordance with its terms.

  • Marginal note:Notice of possibility of consumer proposal being automatically revived

    (6) In the case of a deemed annulment of a consumer proposal made by a person other than a bankrupt, if the administrator considers it appropriate to do so in the circumstances, he or she may, with notice to the official receiver, send to the creditors — within 30 days, or any other number of days that is prescribed, after the day on which the consumer proposal was deemed to be annulled — a notice in the prescribed form informing them that the consumer proposal will be automatically revived 60 days, or any other number of days that is prescribed, after the day on which it was deemed to be annulled unless one of them files with the administrator, in the prescribed manner, a notice of objection to the revival.

  • Marginal note:Automatic revival

    (7) If the notice is sent by the administrator and no notice of objection is filed during the period referred to in subsection (6), the consumer proposal is automatically revived on the expiry of that period.

  • Marginal note:Notice if no automatic revival

    (8) If a notice of objection is filed during the period referred to in subsection (6), the administrator is to send, without delay, to the official receiver and to each creditor a notice in the prescribed form informing them that the consumer proposal is not going to be automatically revived on the expiry of that period.

  • Marginal note:Administrator may apply to court to revive consumer proposal

    (9) The administrator may at any time apply to the court, with notice to the official receiver and the creditors, for an order reviving any consumer proposal of a consumer debtor who is not a bankrupt that was deemed to be annulled, and the court, if it considers it appropriate to do so in the circumstances, may make an order reviving the consumer proposal, on any terms that the court considers appropriate.

  • Marginal note:Duty of administrator if consumer proposal is revived

    (10) Without delay after a consumer proposal is revived, the administrator shall

    • (a) file with the official receiver a report in the prescribed form in relation to the revival; and

    • (b) send a notice to the creditors informing them of the revival.

  • Marginal note:Validity of things done before revival

    (11) The revival of a consumer proposal does not prejudice the validity of anything duly done — between the day on which the consumer proposal is deemed to be annulled and the day on which it is revived — by a creditor in the exercise of any rights revived by subsection 66.32(2).

  • 1992, c. 27, s. 32;
  • 2005, c. 47, s. 52;
  • 2007, c. 36, s. 30.
 
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