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

Act current to 2019-06-20 and last amended on 2018-05-23. Previous Versions

PART IIIProposals (continued)

DIVISION IIConsumer Proposals (continued)

Marginal note:Assignment of wages

  •  (1) An assignment of existing or future wages made by a consumer debtor before the filing of a consumer proposal is of no effect in respect of wages earned after the filing of the consumer proposal.

  • Marginal note:Assignment of debts at request of administrator

    (2) In order to ensure compliance with the terms of a consumer proposal, the administrator may, at any time after the consumer proposal is filed, require of, and take from, the consumer debtor an assignment of any amount payable to the consumer debtor, including wages, that may become payable in the future, but no such assignment can, unless the consumer debtor agrees, be for an amount greater than is due and payable pursuant to the terms of the consumer proposal.

  • Marginal note:Third parties protected

    (3) An assignment made pursuant to subsection (2) is of no effect against a person owing the amount payable until a notice of the assignment is served on that person.

  • Marginal note:When section ceases to apply

    (4) This section ceases to apply where the consumer proposal is refused by the creditors or by the court, or is withdrawn, annulled or deemed annulled.

  • 1992, c. 27, s. 32
  • 1997, c. 12, s. 57

Marginal note:No dismissal, etc., of employee

 No employer shall dismiss, suspend, lay off or otherwise discipline a consumer debtor on the sole ground that a consumer proposal has been filed in respect of that consumer debtor.

  • 1992, c. 27, s. 32

Marginal note:Amendment to consumer proposal

 If an administrator files an amendment to a consumer proposal before the withdrawal, refusal, approval or deemed approval by the court of the consumer proposal, or after the approval or deemed approval by the court of the consumer proposal and before it has been fully performed or annulled or deemed annulled, the provisions of this Division apply to the consumer proposal and the amended consumer proposal, with any modifications that the circumstances require, and, for that purpose, the definition consumer debtor in section 66.11 is to be read as follows:

consumer debtor

consumer debtor means an individual who is insolvent;

  • 1992, c. 27, s. 32
  • 2005, c. 47, s. 56

Marginal note:Certificate if consumer proposal performed

  •  (1) If a consumer proposal is fully performed, the administrator shall issue a certificate to that effect, in the prescribed form, to the consumer debtor and to the official receiver.

  • Marginal note:Effect if counselling refused

    (2) Subsection (1) does not apply in respect of a consumer debtor who has refused or neglected to receive counselling provided under paragraph 66.13(2)(b).

  • 1992, c. 27, s. 32
  • 2005, c. 47, s. 56

Marginal note:Administrator’s accounts, discharge

 The form and content of the administrator’s accounts, the procedure for the preparation and taxation of those accounts and the procedure for the discharge of the administrator shall be as prescribed.

  • 1992, c. 27, s. 32

Marginal note:Act to apply

  •  (1) All the provisions of this Act, except Division I of this Part, in so far as they are applicable, apply, with such modifications as the circumstances require, to consumer proposals.

  • Marginal note:Where consumer debtor is bankrupt

    (2) Where a consumer proposal is made by a consumer debtor who is a bankrupt,

    • (a) the consumer proposal must be approved by the inspectors, if any, before any further action is taken thereon;

    • (b) the consumer debtor must have obtained the assistance of a trustee who shall act as administrator of the proposal in the preparation and execution thereof;

    • (c) the time with respect to which the claims of creditors shall be determined is the time at which the consumer debtor became bankrupt; and

    • (d) the approval or deemed approval by the court of the consumer proposal operates to annul the bankruptcy and to revest in the consumer debtor, or in such other person as the court may approve, all the right, title and interest of the trustee in the property of the consumer debtor, unless the terms of the consumer proposal otherwise provide.

  • 1992, c. 27, s. 32
  • 1997, c. 12, s. 58

PART IVProperty of the Bankrupt

Marginal note:Property of bankrupt

  •  (1) The property of a bankrupt divisible among his creditors shall not comprise

    • (a) property held by the bankrupt in trust for any other person;

    • (b) any property that as against the bankrupt is exempt from execution or seizure under any laws applicable in the province within which the property is situated and within which the bankrupt resides;

    • (b.1) goods and services tax credit payments that are made in prescribed circumstances to the bankrupt and that are not property referred to in paragraph (a) or (b);

    • (b.2) prescribed payments relating to the essential needs of an individual that are made in prescribed circumstances to the bankrupt and that are not property referred to in paragraph (a) or (b); or

    • (b.3) without restricting the generality of paragraph (b), property in a registered retirement savings plan or a registered retirement income fund, as those expressions are defined in the Income Tax Act, or in any prescribed plan, other than property contributed to any such plan or fund in the 12 months before the date of bankruptcy,

    but it shall comprise

    • (c) all property wherever situated of the bankrupt at the date of the bankruptcy or that may be acquired by or devolve on the bankrupt before their discharge, including any refund owing to the bankrupt under the Income Tax Act in respect of the calendar year — or the fiscal year of the bankrupt if it is different from the calendar year — in which the bankrupt became a bankrupt, except the portion that

      • (i) is not subject to the operation of this Act, or

      • (ii) in the case of a bankrupt who is the judgment debtor named in a garnishee summons served on Her Majesty under the Family Orders and Agreements Enforcement Assistance Act, is garnishable money that is payable to the bankrupt and is to be paid under the garnishee summons, and

    • (d) such powers in or over or in respect of the property as might have been exercised by the bankrupt for his own benefit.

  • Marginal note:Deemed trusts

    (2) Subject to subsection (3), notwithstanding any provision in federal or provincial legislation that has the effect of deeming property to be held in trust for Her Majesty, property of a bankrupt shall not be regarded as held in trust for Her Majesty for the purpose of paragraph (1)(a) unless it would be so regarded in the absence of that statutory provision.

  • Marginal note:Exceptions

    (3) Subsection (2) does not apply in respect of amounts deemed to be held in trust under subsection 227(4) or (4.1) of the Income Tax Act, subsection 23(3) or (4) of the Canada Pension Plan or subsection 86(2) or (2.1) of the Employment Insurance Act (each of which is in this subsection referred to as a “federal provision”) nor in respect of amounts deemed to be held in trust under any law of a province that creates a deemed trust the sole purpose of which is to ensure remittance to Her Majesty in right of the province of amounts deducted or withheld under a law of the province where

    • (a) that law of the province imposes a tax similar in nature to the tax imposed under the Income Tax Act and the amounts deducted or withheld under that law of the province are of the same nature as the amounts referred to in subsection 227(4) or (4.1) of the Income Tax Act, or

    • (b) the province is a province providing a comprehensive pension plan as defined in subsection 3(1) of the Canada Pension Plan, that law of the province establishes a provincial pension plan as defined in that subsection and the amounts deducted or withheld under that law of the province are of the same nature as amounts referred to in subsection 23(3) or (4) of the Canada Pension Plan,

    and for the purpose of this subsection, any provision of a law of a province that creates a deemed trust is, notwithstanding any Act of Canada or of a province or any other law, deemed to have the same effect and scope against any creditor, however secured, as the corresponding federal provision.

  • R.S., 1985, c. B-3, s. 67
  • 1992, c. 27, s. 33
  • 1996, c. 23, s. 168
  • 1997, c. 12, s. 59
  • 1998, c. 19, s. 250
  • 2005, c. 47, s. 57
  • 2007, c. 36, s. 32
 
Date modified: