Bankruptcy and Insolvency Act

Marginal note:Assignment of agreements

• 84.1 (1) On application by a trustee and on notice to every party to an agreement, a court may make an order assigning the rights and obligations of a bankrupt under the agreement to any person who is specified by the court and agrees to the assignment.

• Marginal note:Individuals

  (2) In the case of an individual,

  • (a) they may not make an application under subsection (1) unless they are carrying on a business; and

  • (b) only rights and obligations in relation to the business may be assigned.

• Marginal note:Exceptions

  (3) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under

  • (a) an agreement entered into on or after the date of the bankruptcy;

  • (b) an eligible financial contract; or

  • (c) a collective agreement.

• Marginal note:Factors to be considered

  (4) In deciding whether to make the order, the court is to consider, among other things,

  • (a) whether the person to whom the rights and obligations are to be assigned is able to perform the obligations; and

  • (b) whether it is appropriate to assign the rights and obligations to that person.

• Marginal note:Restriction

  (5) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the person’s bankruptcy, insolvency or failure to perform a non-monetary obligation — will be remedied on or before the day fixed by the court.

• Marginal note:Copy of order

  (6) The applicant is to send a copy of the order to every party to the agreement.