Bankruptcy and Insolvency Act

Marginal note:Directives re standard of living factors

• 68 (1) The Superintendent shall, by directive, establish in respect of the provinces or one or more bankruptcy districts or parts of bankruptcy districts, the standards for determining the portion of the total income of an individual bankrupt that exceeds that which is necessary to enable the bankrupt to maintain a reasonable standard of living.

• Marginal note:Interpretation

  (2) For the purposes of this section,

  • (a) "total income" referred to in subsection (1) includes, notwithstanding paragraphs 67(1)(b) and (b.1), all revenues of a bankrupt of whatever nature or source; and

  • (b) a requirement that a bankrupt pay an amount to the estate of the bankrupt is enforceable against all property of the bankrupt, other than property referred to in paragraphs 67(1)(b) and (b.1).

• Marginal note:Trustee to fix amount to be paid

  (3) The trustee shall

  • (a) having regard to the applicable standards established under subsection (1), and to the personal and family situation of the bankrupt, fix the amount that the bankrupt is required to pay to the estate of the bankrupt;

  • (b) inform the official receiver in writing of the amount fixed under paragraph (a); and

  • (c) take reasonable measures to ensure that the bankrupt complies with the requirement to pay.

• Marginal note:Modification by trustee

  (4) The trustee may, at any time, amend an amount fixed under subsection (3) to take into account

  • (a) material changes that have occurred in the personal or family situation of the bankrupt; or

  • (b) a recommendation made by the official receiver under subsection (5).

• Marginal note:Official receiver recommendation

  (5) Where the official receiver determines that the amount required to be paid by the bankrupt under subsection (3) or (4) is substantially not in accordance with the applicable standards established under subsection (1), the official receiver shall recommend to the trustee and to the bankrupt an amount required to be paid that the official receiver determines is in accordance with the applicable standards.

• Marginal note:Trustee may request mediation

  (6) Where the trustee and the bankrupt are not in agreement with the amount that the bankrupt is required to pay under subsection (3) or (4), the trustee shall, forthwith, in the prescribed form, send to the official receiver a request that the matter be determined by mediation and send a copy of the request to the bankrupt.

• Marginal note:Creditor may request mediation

  (7) On the request in writing of a creditor made within thirty days after the date of bankruptcy or an amendment referred to in subsection (4), the trustee shall, within the five days following the thirty day period, send to the official receiver a request in the prescribed form that the matter of the amount the bankrupt is required to pay under subsection (3) or (4) be determined by mediation and send a copy of the request to the bankrupt and the creditor.

• Marginal note:Mediation procedure

  (8) A mediation shall be in accordance with prescribed procedures.

• Marginal note:File

  (9) Documents contained in a file on the mediation of a matter under this section form part of the records referred to in subsection 11.1(2).

• Marginal note:Court determination

  (10) Where

  • (a) the trustee has not implemented a recommendation made by the official receiver under subsection (5),

  • (b) the issue submitted to mediation requested under subsection (6) or (7) is not thereby resolved, or

  • (c) the bankrupt fails to comply with the requirement to pay as determined under this section,

  the trustee may, or on the request of the inspectors, any of the creditors or the official receiver shall, apply to the court for the hearing of the matter, and the court may, on the hearing, in accordance with the standards established under subsection (1) and having regard to the personal and family situation of the bankrupt, by order, fix the amount that the bankrupt is required to pay to the estate of the bankrupt.

• Marginal note:Fixing fair and reasonable remuneration in the case of related persons

  (11) The court may fix an amount that is fair and reasonable

  • (a) as salary, wages or other remuneration for the services being performed by a bankrupt for a person employing the bankrupt, or

  • (b) as payment for or commission in respect of any services being performed by a bankrupt for a person,

  where the person is related to the bankrupt, and the court may, by order, determine the part of the salary, wages or other remuneration, or the part of the payment or commission, that shall be paid to the trustee on the basis of the amount so fixed by the court, unless it appears to the court that the services have been performed for the benefit of the bankrupt and are not of any substantial benefit to the person for whom they were performed.

• Marginal note:Modification of order

  (12) On the application of any interested person, the court may, at any time, amend an order made under this section to take into account material changes that have occurred in the personal or family situation of the bankrupt.

• Marginal note:Default by other person

  (13) An order of the court made under this section may be served on a person from whom the bankrupt is entitled to receive money and, in such case,

  • (a) the order binds the person to pay to the estate of the bankrupt the amount fixed by the order; and

  • (b) if the person fails to comply with the terms of the order, the court may, on the application of the trustee, order the person to pay the trustee the amount of money that the estate of the bankrupt would have received had the person complied with the terms of the order.

• Marginal note:Application is a proceeding

  (14) For the purposes of section 38, an application referred to in subsection (10) is deemed to be a proceeding for the benefit of the estate.