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

Act current to 2017-10-13 and last amended on 2017-09-21. Previous Versions

Marginal note:Application against estate or succession
  •  (1) Subject to section 43, an application for a bankruptcy order may be filed against the estate or succession of a deceased debtor.

  • Marginal note:Personal liability

    (2) After service of an application for a bankruptcy order on the executor or administrator of the estate of a deceased debtor, or liquidator of the succession of a deceased debtor, the person on whom the order was served shall not make payment of any moneys or transfer any property of the deceased debtor, except as required for payment of the proper funeral and testamentary expenses, until the application is disposed of; otherwise, in addition to any penalties to which the person may be subject, the person is personally liable for the payment or transfer.

  • Marginal note:Act done in good faith

    (3) Nothing in this section invalidates any payment or transfer of property made or any act or thing done, in good faith, by the executor, administrator of the estate or liquidator of the succession before the service of an application referred to in subsection (2).

  • R.S., 1985, c. B-3, s. 44;
  • 2004, c. 25, s. 28.
Marginal note:Costs of application
  •  (1) If a bankruptcy order is made, the costs of the applicant shall be taxed and be payable out of the estate, unless the court otherwise orders.

  • Marginal note:Insufficient proceeds

    (2) If the proceeds of the estate are not sufficient for the payment of any costs incurred by the trustee, the court may order the costs to be paid by the applicant.

  • R.S., 1985, c. B-3, s. 45;
  • 1992, c. 1, s. 14;
  • 2004, c. 25, s. 28.

Interim Receiver

Marginal note:Appointment of interim receiver
  •  (1) The court may, if it is shown to be necessary for the protection of the estate of a debtor, at any time after the filing of an application for a bankruptcy order and before a bankruptcy order is made, appoint a licensed trustee as interim receiver of the property or any part of the property of the debtor and direct the interim receiver to take immediate possession of the property or any part of it on an undertaking being given by the applicant that the court may impose with respect to interference with the debtor’s legal rights and with respect to damages in the event of the application being dismissed.

  • Marginal note:Powers of interim receiver

    (2) The interim receiver appointed under subsection (1) may, under the direction of the court, take conservatory measures and summarily dispose of property that is perishable or likely to depreciate rapidly in value and exercise such control over the business of the debtor as the court deems advisable, but the interim receiver shall not unduly interfere with the debtor in the carrying on of his business except as may be necessary for conservatory purposes or to comply with the order of the court.

  • Marginal note:Place of filing

    (3) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor.

  • R.S., 1985, c. B-3, s. 46;
  • 1997, c. 12, s. 27(F);
  • 2004, c. 25, s. 29;
  • 2007, c. 36, s. 13.
Marginal note:Appointment of interim receiver
  •  (1) If the court is satisfied that a notice is about to be sent or was sent under subsection 244(1), it may, subject to subsection (3), appoint a trustee as interim receiver of all or any part of the debtor’s property that is subject to the security to which the notice relates until the earliest of

    • (a) the taking of possession by a receiver, within the meaning of subsection 243(2), of the debtor’s property over which the interim receiver was appointed,

    • (b) the taking of possession by a trustee of the debtor’s property over which the interim receiver was appointed, and

    • (c) the expiry of 30 days after the day on which the interim receiver was appointed or of any period specified by the court.

  • Marginal note:Directions to interim receiver

    (2) The court may direct an interim receiver appointed under subsection (1) to do any or all of the following:

    • (a) take possession of all or part of the debtor’s property mentioned in the appointment;

    • (b) exercise such control over that property, and over the debtor’s business, as the court considers advisable;

    • (c) take conservatory measures; and

    • (d) summarily dispose of property that is perishable or likely to depreciate rapidly in value.

  • Marginal note:When appointment may be made

    (3) An appointment of an interim receiver may be made under subsection (1) only if it is shown to the court to be necessary for the protection of

    • (a) the debtor’s estate; or

    • (b) the interests of the creditor who sent the notice under subsection 244(1).

  • Marginal note:Place of filing

    (4) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor.

  • R.S., 1985, c. B-3, s. 47;
  • 1992, c. 27, s. 16;
  • 2005, c. 47, s. 30;
  • 2007, c. 36, s. 14.
Marginal note:Appointment of interim receiver
  •  (1) If a notice of intention has been filed under section 50.4 or a proposal has been filed under subsection 62(1), the court may at any time after the filing, subject to subsection (3), appoint as interim receiver of all or any part of the debtor’s property,

    • (a) the trustee under the notice of intention or proposal;

    • (b) another trustee; or

    • (c) the trustee under the notice of intention or proposal and another trustee jointly.

  • Marginal note:Duration of appointment

    (1.1) The appointment expires on the earliest of

    • (a) the taking of possession by a receiver, within the meaning of subsection 243(2), of the debtor’s property over which the interim receiver was appointed,

    • (b) the taking of possession by a trustee of the debtor’s property over which the interim receiver was appointed, and

    • (c) court approval of the proposal.

  • Marginal note:Directions to interim receiver

    (2) The court may direct an interim receiver appointed under subsection (1) to do any or all of the following:

    • (a) carry out the duties set out in subsection 50(10) or 50.4(7), in substitution for the trustee referred to in that subsection or jointly with that trustee;

    • (b) take possession of all or part of the debtor’s property mentioned in the order of the court;

    • (c) exercise such control over that property, and over the debtor’s business, as the court considers advisable;

    • (d) take conservatory measures; and

    • (e) summarily dispose of property that is perishable or likely to depreciate rapidly in value.

  • Marginal note:When appointment may be made

    (3) An appointment of an interim receiver may be made under subsection (1) only if it is shown to the court to be necessary for the protection of

    • (a) the debtor’s estate; or

    • (b) the interests of one or more creditors, or of the creditors generally.

  • Marginal note:Place of filing

    (4) An application under subsection (1) is to be filed in a court having jurisdiction in the judicial district of the locality of the debtor.

  • 1992, c. 27, s. 16;
  • 2005, c. 47, s. 31;
  • 2007, c. 36, s. 15.
Marginal note:Orders respecting fees and expenses
  •  (1) If an appointment of an interim receiver is made under section 47 or 47.1, the court may make any order respecting the payment of fees and disbursements of the interim receiver that it considers proper, including an order giving the interim receiver security, ranking ahead of any or all secured creditors, over any or all of the assets of the debtor in respect of the interim receiver’s claim for fees or disbursements, but the court shall not make such an order unless it is satisfied that all secured creditors who would be materially affected by the order were given reasonable advance notification and an opportunity to make representations to the court.

  • Marginal note:Meaning of disbursements

    (2) In subsection (1), “disbursements” do not include payments made in operating a business of the debtor.

  • Marginal note:Accounts, discharge of interim receivers

    (3) With respect to interim receivers appointed under section 46, 47 or 47.1,

    • (a) the form and content of their accounts, including their final statement of receipts and disbursements,

    • (b) the procedure for the preparation and taxation of those accounts, and

    • (c) the procedure for the discharge of the interim receiver

    shall be as prescribed.

  • 1992, c. 27, s. 16;
  • 2004, c. 25, s. 30;
  • 2005, c. 47, s. 32;
  • 2015, c. 3, s. 7(F).
 
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