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

Act current to 2021-09-11 and last amended on 2019-11-01. Previous Versions

PART VAdministration of Estates (continued)

Dividends (continued)

Marginal note:Right of creditor who has not proved claim before declaration of dividend

 A creditor who has not proved his claim before the declaration of any dividend is entitled on proof of his claim to be paid, out of any money for the time being in the hands of the trustee, any dividend or dividends he may have failed to receive before that money is applied to the payment of any future dividend, but he is not entitled to disturb the distribution of any dividend declared before his claim was proved for the reason that he has not participated therein, except on such terms and conditions as may be ordered by the court.

  • R.S., c. B-3, s. 121

Marginal note:Final dividend and division of estate

 When the trustee has realized all the property of the bankrupt or all thereof that can, in the joint opinion of himself and of the inspectors, be realized without needlessly protracting the administration, and settled or determined or caused to be settled or determined the claims of all creditors to rank against the estate of the bankrupt, he shall prepare a final statement of receipts and disbursements and dividend sheet and, subject to this Act, divide the property of the bankrupt among the creditors who have proved their claims.

  • R.S., c. B-3, s. 122

Marginal note:Statement of receipts and disbursements

  •  (1) The trustee’s final statement of receipts and disbursements shall contain

    • (a) a complete account of

      • (i) all moneys received by the trustee out of the bankrupt’s property or otherwise,

      • (ii) the amount of interest received by the trustee,

      • (iii) all moneys disbursed and expenses incurred by the trustee,

      • (iv) all moneys disbursed by the trustee for services provided by persons related to the trustee, and

      • (v) the remuneration claimed by the trustee; and

    • (b) full particulars of, and a description and value of, all the bankrupt’s property that has not been sold or realized together with the reason why it has not been sold or realized and the disposition made of that property.

  • Marginal note:Prescribed form

    (2) The statement referred to in subsection (1) shall be prepared in the prescribed form or as near thereto as the circumstances of the case will permit and together with the dividend sheet shall be submitted to the inspectors for their approval.

  • Marginal note:Copy to Superintendent

    (3) The trustee shall forward a copy of the statement and dividend sheet to the Superintendent after they have been approved by the inspectors.

  • Marginal note:Superintendent may comment

    (4) The Superintendent may comment as he sees fit and his comments shall be placed by the trustee before the taxing officer for his consideration on the taxation of the trustee’s accounts.

  • Marginal note:Notice of final dividend, etc.

    (5) After the Superintendent has commented on the taxation of the trustee’s accounts or advised the trustee that the Superintendent has no comments to make and the trustee’s accounts have been taxed, the trustee shall send, in the prescribed manner, to every creditor whose claim has been proved, to the registrar, to the Superintendent and to the bankrupt

    • (a) a copy of the final statement of receipts and disbursements;

    • (b) a copy of the dividend sheet; and

    • (c) a notice, in the prescribed form, of the trustee’s intention to pay a final dividend after the expiry of 15 days from the sending of the notice, statement and dividend sheet and to apply to the court for his or her discharge on a subsequent date that is not less than 30 days after the payment of the dividend.

  • Marginal note:Objections

    (6) No interested person is entitled to object to the final statement and the dividend sheet unless, prior to the expiration of the fifteen days referred to in paragraph (5)(c), that person files notice of his objection with the registrar setting out his reasons therefor and serves a copy of the notice on the trustee.

  • R.S., 1985, c. B-3, s. 152
  • 1992, c. 1, s. 20, c. 27, s. 55
  • 2005, c. 47, s. 93

Marginal note:Dividends on joint and separate properties

 Where joint and separate properties are being administered, the dividends may be declared together, and the expenses thereof shall be apportioned by the trustee.

  • R.S., c. B-3, s. 124

Marginal note:Unclaimed dividends and undistributed funds

  •  (1) Before proceeding to discharge, the trustee shall forward to the Superintendent for deposit, according to the directives of the Superintendent, with the Receiver General the unclaimed dividends and undistributed funds that the trustee possesses, other than those exempted by the General Rules, and shall provide a list of the names and the post office addresses, in so far as known, of the creditors entitled to the unclaimed dividends, showing the amount payable to each creditor.

  • Marginal note:Receiver General to pay claims

    (2) The Receiver General shall, after receiving the dividends and funds and the list referred to in subsection (1), on application, pay to any creditor his proper dividend as shown on that list, and such payment has effect as if made by the trustee.

  • R.S., 1985, c. B-3, s. 154
  • 1992, c. 27, s. 56

Summary Administration

Marginal note:Summary administration

 The following provisions apply to the summary administration of estates under this Act:

  • (a) all proceedings under this section shall be entitled “Summary Administration”;

  • (b) the security to be deposited by a trustee under section 16 shall not be required unless directed by the official receiver;

  • (b.1) [Repealed, 1992, c. 1, s. 161]

  • (c) a notice of the bankruptcy shall not be published in a local newspaper unless such publication is deemed expedient by the trustee or ordered by the court;

  • (d) all notices, statements and other documents shall be sent in the prescribed manner;

  • (d.1) if a first meeting of the creditors is requested by the official receiver or by creditors who have in the aggregate at least 25% in value of the proven claims, the trustee shall call the meeting, in the prescribed form and manner, and it must be held within 21 days after being called;

  • (e) there shall be no inspectors unless the creditors decide to appoint them, and if no inspectors are appointed, the trustee, in the absence of directions from the creditors, may do all things that may ordinarily be done by the trustee with the permission of the inspectors;

  • (f) in such circumstances as are specified in directives of the Superintendent, the estates of individuals who, because of their relationship, could reasonably be dealt with as one estate may be dealt with as one estate;

  • (g) in such circumstances as are specified in directives of the Superintendent and with the approval of the Superintendent, the trustee may deposit all moneys relating to the summary administration of estates in a single trust account;

  • (h) a notice of bankruptcy and

    • (i) a notice of impending automatic discharge of the bankrupt, or

    • (ii) an application for discharge of the bankrupt

    may be given in a single notice in the prescribed form;

  • (i) notwithstanding section 152, the procedure respecting the trustee’s accounts, including the taxation thereof shall be as prescribed;

  • (j) notwithstanding subsections 41(1), (5) and (6), the procedure for the trustee’s discharge shall be as prescribed; and

  • (k) the court’s authorization referred to in subsection 30(4) for a sale or disposal of any of the bankrupt’s property to a person who is related to the bankrupt is required only if the creditors decide that the authorization is required.

  • R.S., 1985, c. B-3, s. 155
  • 1992, c. 1, ss. 16, 161, c. 27, s. 57
  • 1997, c. 12, s. 92
  • 1999, c. 31, s. 26
  • 2005, c. 47, s. 94

Marginal note:Fees and disbursements of trustee

 The trustee shall receive such fees and disbursements as may be prescribed.

  • R.S., c. B-3, s. 127

Marginal note:Agreement to pay fees and disbursements

 An individual bankrupt who has never before been bankrupt under the laws of Canada or of any prescribed jurisdiction and who is not required to make payments under section 68 to the estate of the bankrupt may enter into an agreement with the trustee to pay the trustee’s fees and disbursements if the total amount required to be paid under the agreement is not more than the prescribed amount and that total amount is to be paid before the expiry of the 12-month period after the bankrupt’s discharge. The agreement may be enforced after the bankrupt’s discharge.

  • 2005, c. 47, s. 95
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