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

Act current to 2017-12-11 and last amended on 2017-09-21. Previous Versions

Marginal note:Re-examination of debtor
  •  (1) A debtor or any registered creditor may at any time apply ex parte to the clerk for a further examination and hearing of the debtor in respect of his financial circumstances.

  • Marginal note:Idem

    (2) The further hearing referred to in subsection (1) may only be held

    • (a) with the leave of the clerk; or

    • (b) in the event of the refusal of the clerk, with leave of the court.

  • Marginal note:Notice of hearing

    (3) The clerk shall give all parties to the consolidation order at least thirty days notice of the time appointed for the hearing referred to in subsection (1).

  • Marginal note:Clerk may vary order, etc.

    (4) Where after considering the evidence presented at the further hearing referred to in subsection (1) the clerk is of the opinion that

    • (a) the terms of payment set out in the consolidation order, or

    • (b) the decision that the circumstances of the debtor do not warrant the immediate settling of any amounts or times of payment thereof,

    should be changed because of a change in the circumstances of the debtor, he may

    • (c) vary the order with respect to the amounts to be paid by the debtor into court or the times of payment thereof, or

    • (d) on notice of motion refer the matter to the court for settlement.

  • Marginal note:Application of section 227

    (5) Section 227 applies, with such modifications as the circumstances require, to a decision of the clerk under subsection (4).

  • R.S., 1985, c. B-3, s. 234;
  • 1992, c. 1, s. 19.
Marginal note:Disposition of moneys paid into court
  •  (1) Subject to subsection (3), the clerk shall distribute the moneys paid into court on account of the debts of a debtor at least once every three months.

  • Marginal note:Idem

    (2) The clerk shall distribute the money paid under subsection (1) rateably, or as nearly so as is practicable, among the registered creditors.

  • Marginal note:Payments less than five dollars

    (3) Except in the case of a final payment under a consolidation order, the clerk is not required to make a payment to any creditor if the amount thereof is less than five dollars.

  • R.S., c. B-3, s. 206.
Marginal note:Oaths
  •  (1) The clerk may for the purposes of this Part examine any person under oath and may administer oaths.

  • Marginal note:Record

    (2) The clerk shall make a written record in summary form of all evidence given at a hearing.

  • R.S., c. B-3, s. 207.
Marginal note:If assignment or bankruptcy order made
  •  (1) If a debtor in respect of whom a consolidation order has been issued under this Part makes an assignment under section 49, or if a bankruptcy order is made against the debtor under section 43, or if a proposal by the debtor is approved by the court having jurisdiction in bankruptcy under sections 59 to 61, any moneys that have been paid into court as required by the consolidation order and that have not yet been distributed to the registered creditors shall, immediately after the making of the assignment or bankruptcy order or the approval of the proposal, be distributed among those creditors by the clerk in the proportions to which they are entitled under the consolidation order.

  • Marginal note:Proceedings may be taken under other Parts

    (2) The fact that proceedings have been taken under this Part does not prevent the taking of proceedings by or against the debtor under the provisions of any other Part of this Act.

  • Marginal note:Idem

    (3) None of the provisions of Parts I to IX of this Act applies to proceedings under this Part.

  • R.S., 1985, c. B-3, s. 237;
  • 2004, c. 25, s. 96.
Marginal note:Appeal

 A decision or order of the court under this Part is subject to appeal in the same manner as if it were a judgment of the court in a civil action.

  • R.S., c. B-3, s. 209.
Marginal note:Clerk to report
  •  (1) On the issue of any consolidation order, the clerk shall forward a copy thereof to the Superintendent.

  • Marginal note:Idem

    (2) The clerk shall give to the Superintendent all reports that the Superintendent may require for the administration of this Part.

  • R.S., 1985, c. B-3, s. 239;
  • 1992, c. 27, s. 86.
Marginal note:No dismissal, etc., of employees

 No employer shall dismiss, suspend, lay off or otherwise discipline a debtor by reason only that the debtor has applied for a consolidation order under this Part.

  • 1992, c. 27, s. 87.
Marginal note:No discontinuance of public utilities
  •  (1) No public utility shall discontinue service to a debtor by reason only that the debtor

    • (a) is insolvent;

    • (b) has applied for a consolidation order under this Part; or

    • (c) has not paid for service rendered before the consolidation order was applied for.

  • Marginal note:Cash payments

    (2) Nothing in subsection (1) shall be construed as requiring further supply of service for other than payment in cash.

  • 1992, c. 27, s. 87.
Marginal note:Regulations

 The Governor in Council may make regulations

  • (a) prescribing the forms to be used under this Part;

  • (b) respecting costs, fees and levies to be paid under this Part;

  • (c) designating the “court” for the purpose of this Part in any province except Manitoba and Alberta;

  • (d) adapting this Part to the court organization or other circumstances of a particular province;

  • (e) varying, in respect of any province, the classes of debts and amounts thereof to which this Part applies;

  • (f) changing or prescribing, in respect of any province, the classes of debts to which this Part does not apply;

  • (f.1) respecting the transfer of proceedings to a province other than the province in which a consolidation order was originally issued; and

  • (g) generally, for carrying into effect the purposes and provisions of this Part.

  • R.S., 1985, c. B-3, s. 240;
  • 1992, c. 27, s. 88.
Marginal note:Audit of proceedings

 The accounts of every clerk that relate to proceedings under this Part are subject to audit in the same manner as if the accounts were the accounts of a provincial officer.

  • R.S., c. B-3, s. 212.
Marginal note:Application of this Part
  •  (1) The Governor in Council shall, at the request of the lieutenant governor in council of a province, declare, by order, that this Part applies or ceases to apply, as the case may be, in respect of the province.

  • Marginal note:Automatic application

    (2) Subject to an order being made under subsection (1) declaring that this Part ceases to apply in respect of a province, if this Part is in force in the province immediately before that subsection comes into force, this Part applies in respect of the province.

  • R.S., 1985, c. B-3, s. 242;
  • 2002, c. 7, s. 85;
  • 2007, c. 36, s. 57.

PART XISecured Creditors and Receivers

Marginal note:Court may appoint receiver
  •  (1) Subject to subsection (1.1), on application by a secured creditor, a court may appoint a receiver to do any or all of the following if it considers it to be just or convenient to do so:

    • (a) take possession of all or substantially all of the inventory, accounts receivable or other property of an insolvent person or bankrupt that was acquired for or used in relation to a business carried on by the insolvent person or bankrupt;

    • (b) exercise any control that the court considers advisable over that property and over the insolvent person’s or bankrupt’s business; or

    • (c) take any other action that the court considers advisable.

  • Marginal note:Restriction on appointment of receiver

    (1.1) In the case of an insolvent person in respect of whose property a notice is to be sent under subsection 244(1), the court may not appoint a receiver under subsection (1) before the expiry of 10 days after the day on which the secured creditor sends the notice unless

    • (a) the insolvent person consents to an earlier enforcement under subsection 244(2); or

    • (b) the court considers it appropriate to appoint a receiver before then.

  • Definition of receiver

    (2) Subject to subsections (3) and (4), in this Part, receiver means a person who

    • (a) is appointed under subsection (1); or

    • (b) is appointed to take or takes possession or control — of all or substantially all of the inventory, accounts receivable or other property of an insolvent person or bankrupt that was acquired for or used in relation to a business carried on by the insolvent person or bankrupt — under

      • (i) an agreement under which property becomes subject to a security (in this Part referred to as a “security agreement”), or

      • (ii) a court order made under another Act of Parliament, or an Act of a legislature of a province, that provides for or authorizes the appointment of a receiver or receiver-manager.

  • Definition of receiver — subsection 248(2)

    (3) For the purposes of subsection 248(2), the definition receiver in subsection (2) is to be read without reference to paragraph (a) or subparagraph (b)(ii).

  • Marginal note:Trustee to be appointed

    (4) Only a trustee may be appointed under subsection (1) or under an agreement or order referred to in paragraph (2)(b).

  • Marginal note:Place of filing

    (5) The application is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor.

  • Marginal note:Orders respecting fees and disbursements

    (6) If a receiver is appointed under subsection (1), the court may make any order respecting the payment of fees and disbursements of the receiver that it considers proper, including one that gives the receiver a charge, ranking ahead of any or all of the secured creditors, over all or part of the property of the insolvent person or bankrupt in respect of the receiver’s claim for fees or disbursements, but the court may not make the order unless it is satisfied that the secured creditors who would be materially affected by the order were given reasonable notice and an opportunity to make representations.

  • Meaning of disbursements

    (7) In subsection (6), disbursements does not include payments made in the operation of a business of the insolvent person or bankrupt.

  • 1992, c. 27, s. 89;
  • 2005, c. 47, s. 115;
  • 2007, c. 36, s. 58.
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