Bankruptcy and Insolvency Act

Marginal note:Certain rights limited

• 66.34 (1) Where a consumer proposal has been filed in respect of a consumer debtor, no person may terminate or amend any agreement with the consumer debtor, or claim an accelerated payment under any agreement with the consumer debtor, by reason only that

  • (a) the consumer debtor is insolvent, or

  • (b) a consumer proposal has been filed in respect of the consumer debtor

  until the consumer proposal has been withdrawn, refused by the creditors or the court, annulled or deemed annulled.

• Marginal note:Idem

  (2) Where the agreement referred to in subsection (1) is a lease, subsection (1) shall be read as including the following paragraph:

  • "(c) the consumer debtor has not paid rent in respect of a period preceding the filing of the consumer proposal."

• Marginal note:Idem

  (3) Where a consumer proposal has been filed in respect of a consumer debtor, no public utility may discontinue service to that consumer debtor by reason only that

  • (a) the consumer debtor is insolvent,

  • (b) a consumer proposal has been filed in respect of the consumer debtor, or

  • (c) the consumer debtor has not paid for services rendered, or material provided, before the filing of the consumer proposal

  until the consumer proposal has been withdrawn, refused by the creditors or the court, annulled or deemed annulled.

• Marginal note:Certain acts not prevented

  (4) Nothing in subsections (1) to (3) shall be construed

  • (a) as prohibiting a person from requiring payments to be made in cash for goods, services, use of leased property or other valuable consideration provided after the filing of the consumer proposal; or

  • (b) as requiring the further advance of money or credit.

• Marginal note:Provisions of section override agreement

  (5) Any provision in an agreement that has the effect of providing for, or permitting, anything that, in substance, is contrary to subsections (1) to (3) is of no force or effect.

• Marginal note:Powers of court

  (6) The court may, on application by a party to an agreement or by a public utility, declare that this section does not apply, or applies only to the extent declared by the court, where the applicant satisfies the court that the operation of this section would likely cause it significant financial hardship.