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

Act current to 2022-06-20 and last amended on 2022-06-09. Previous Versions

PART VIBankrupts (continued)

Discharge of Bankrupts (continued)

Marginal note:Court may grant certificates

  •  (1) A statutory disqualification on account of bankruptcy ceases when the bankrupt obtains from the court his discharge with a certificate to the effect that the bankruptcy was caused by misfortune without any misconduct on his part.

  • Marginal note:Appeal

    (2) The court may, if it thinks fit, grant a certificate mentioned in subsection (1), and a refusal to grant such a certificate is subject to appeal.

  • R.S., c. B-3, s. 145

Marginal note:Duty of bankrupt on conditional discharge

  •  (1) Where an order is granted on terms or conditions or on the bankrupt consenting to judgment, the bankrupt shall, until the terms, conditions or judgment is satisfied,

    • (a) give the trustee such information as he may require with respect to his earnings and after-acquired property and income, and

    • (b) not less than once a year, file in the court and with the trustee a statement verified under oath showing the particulars of any property or income he may have acquired subsequent to the order for his discharge,

    and the trustee or any creditor may require the bankrupt to attend for examination under oath with respect to the facts contained in the statement or with respect to his earnings, income, after-acquired property or dealings.

  • Marginal note:Penalty for failure to comply

    (2) Where the bankrupt fails to give information or to file a statement as required by subsection (1), to attend for examination when required to do so or to answer all questions fully and accurately with respect to his earnings, income, after-acquired property or dealings, the court may on the application of the trustee or of any creditor revoke the order of discharge.

  • Marginal note:Trustee to distribute funds payable under conditional discharge

    (3) Where a conditional order of discharge of a bankrupt is made providing for payment of a further dividend or sum of money by the bankrupt, all payments on account thereof shall be made to the trustee for distribution to the creditors.

  • R.S., c. B-3, s. 146

 [Repealed, 2000, c. 12, s. 17]

Marginal note:Debts not released by order of discharge

  •  (1) An order of discharge does not release the bankrupt from

    • (a) any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail;

    • (a.1) any award of damages by a court in civil proceedings in respect of

      • (i) bodily harm intentionally inflicted, or sexual assault, or

      • (ii) wrongful death resulting therefrom;

    • (b) any debt or liability for alimony or alimentary pension;

    • (c) any debt or liability arising under a judicial decision establishing affiliation or respecting support or maintenance, or under an agreement for maintenance and support of a spouse, former spouse, former common-law partner or child living apart from the bankrupt;

    • (d) any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in the Province of Quebec, as a trustee or administrator of the property of others;

    • (e) any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability that arises from an equity claim;

    • (f) liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee, unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim;

    • (g) any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred

      • (i) before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or

      • (ii) within seven years after the date on which the bankrupt ceased to be a full- or part-time student;

    • (g.1) any debt or obligation in respect of a loan made under the Apprentice Loans Act where the date of bankruptcy of the bankrupt occurred

      • (i) before the date on which the bankrupt ceased, under that Act, to be an eligible apprentice within the meaning of that Act, or

      • (ii) within seven years after the date on which the bankrupt ceased to be an eligible apprentice; or

    • (h) any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (g.1).

  • Marginal note:Court may order non-application of subsection (1)

    (1.1) At any time after five years after the day on which a bankrupt who has a debt referred to in paragraph (1)(g) or (g.1) ceases to be a full- or part-time student or an eligible apprentice, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that

    • (a) the bankrupt has acted in good faith in connection with the bankrupt’s liabilities under the debt; and

    • (b) the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the debt.

  • Marginal note:Claims released

    (2) Subject to subsection (1), an order of discharge releases the bankrupt from all claims provable in bankruptcy.

  • R.S., 1985, c. B-3, s. 178
  • R.S., 1985, c. 3 (2nd Supp.), s. 28
  • 1992, c. 27, s. 64
  • 1997, c. 12, s. 105
  • 1998, c. 21, s. 103
  • 2000, c. 12, s. 18
  • 2001, c. 4, s. 32
  • 2004, c. 25, s. 83
  • 2005, c. 47, s. 107
  • 2007, c. 36, s. 54
  • 2014, c. 20, s. 484

Marginal note:Partner or co-trustee not released

 An order of discharge does not release a person who at the time of the bankruptcy was a partner or co-trustee with the bankrupt or was jointly bound or had made a joint contract with the bankrupt, or a person who was surety or in the nature of a surety for the bankrupt.

  • R.S., 1985, c. B-3, s. 179
  • 2004, c. 25, s. 84(F)
  • 2005, c. 47, s. 108(E)

Marginal note:Court may annul discharge

  •  (1) Where a bankrupt after his discharge fails to perform the duties imposed on him by this Act, the court may, on application, annul his discharge.

  • Marginal note:Annulment of discharge obtained by fraud

    (2) Where it appears to the court that the discharge of a bankrupt was obtained by fraud, the court may, on application, annul his discharge.

  • Marginal note:Effect of annulment of discharge

    (3) An order revoking or annulling the discharge of a bankrupt does not prejudice the validity of a sale, disposition of property, payment made or thing duly done before the revocation or annulment of the discharge.

  • R.S., 1985, c. B-3, s. 180
  • 2004, c. 25, s. 85(F)

Marginal note:Power of court to annul bankruptcy

  •  (1) If, in the opinion of the court, a bankruptcy order ought not to have been made or an assignment ought not to have been filed, the court may by order annul the bankruptcy.

  • Marginal note:Effect of annulment of bankruptcy

    (2) If an order is made under subsection (1), all sales, dispositions of property, payments duly made and acts done before the making of the order by the trustee or other person acting under the trustee’s authority, or by the court, are valid, but the property of the bankrupt shall vest in any person that the court may appoint, or, in default of any appointment, revert to the bankrupt for all the estate, or interest or right of the trustee in the estate, on any terms and subject to any conditions, if any, that the court may order.

  • Marginal note:Final statement of receipts and disbursements

    (3) If an order is made under subsection (1), the trustee shall, without delay, prepare the final statements of receipts and disbursements referred to in section 151.

  • R.S., 1985, c. B-3, s. 181
  • 2004, c. 25, s. 86
  • 2005, c. 47, s. 109

Marginal note:Stay on issue of order

  •  (1) An order of discharge or annulment shall be dated on the day on which it is made, but it shall not be issued or delivered until the expiration of the time allowed for an appeal, and, if an appeal is entered, not until the appeal has been finally disposed of.

  • (2) [Repealed, 1992, c. 27, s. 65]

  • R.S., 1985, c. B-3, s. 182
  • 1992, c. 27, s. 65

PART VIICourts and Procedure

Jurisdiction of Courts

Marginal note:Courts vested with jurisdiction

  •  (1) The following courts are invested with such jurisdiction at law and in equity as will enable them to exercise original, auxiliary and ancillary jurisdiction in bankruptcy and in other proceedings authorized by this Act during their respective terms, as they are now, or may be hereafter, held, and in vacation and in chambers:

    • (a) in the Province of Ontario, the Superior Court of Justice;

    • (b) [Repealed, 2001, c. 4, s. 33]

    • (c) in the Provinces of Nova Scotia and British Columbia, the Supreme Court;

    • (d) in the Provinces of New Brunswick and Alberta, the Court of Queen’s Bench;

    • (e) in the Province of Prince Edward Island, the Supreme Court of the Province;

    • (f) in the Provinces of Manitoba and Saskatchewan, the Court of Queen’s Bench;

    • (g) in the Province of Newfoundland and Labrador, the Trial Division of the Supreme Court; and

    • (h) in Yukon, the Supreme Court of Yukon, in the Northwest Territories, the Supreme Court of the Northwest Territories, and in Nunavut, the Nunavut Court of Justice.

  • Marginal note:Superior Court jurisdiction in the Province of Quebec

    (1.1) In the Province of Quebec, the Superior Court is invested with the jurisdiction that will enable it to exercise original, auxiliary and ancillary jurisdiction in bankruptcy and in other proceedings authorized by this Act during its term, as it is now, or may be hereafter, held, and in vacation and in chambers.

  • Marginal note:Courts of appeal — common law provinces

    (2) Subject to subsection (2.1), the courts of appeal throughout Canada, within their respective jurisdictions, are invested with power and jurisdiction at law and in equity, according to their ordinary procedures, except as varied by this Act or the General Rules, to hear and determine appeals from the courts vested with original jurisdiction under this Act.

  • Marginal note:Court of Appeal of the Province of Quebec

    (2.1) In the Province of Quebec, the Court of Appeal, within its jurisdiction, is invested with power and jurisdiction, according to its ordinary procedures, except as varied by this Act or the General Rules, to hear and determine appeals from the Superior Court.

  • Marginal note:Supreme Court of Canada

    (3) The Supreme Court of Canada has jurisdiction to hear and to decide according to its ordinary procedure any appeal so permitted and to award costs.

  • R.S., 1985, c. B-3, s. 183
  • R.S., 1985, c. 27 (2nd Supp.), s. 10
  • 1990, c. 17, s. 3
  • 1998, c. 30, s. 14
  • 1999, c. 3, s. 15
  • 2001, c. 4, s. 33
  • 2002, c. 7, s. 83
  • 2015, c. 3, s. 9

Marginal note:Appointment of officers

 Each of the following persons, namely,

  • (a) the Chief Justice of the court,

  • (b) in Quebec, the Chief Justice or the Associate Chief Justice in the district to which the Chief Justice or Associate Chief Justice was appointed,

  • (c) in Yukon, the Commissioner of Yukon,

  • (d) in the Northwest Territories, the Commissioner of the Northwest Territories, and

  • (e) in Nunavut, the Commissioner of Nunavut,

shall appoint and assign such registrars, clerks and other officers in bankruptcy as deemed necessary for the transaction or disposal of matters in respect of which power or jurisdiction is given by this Act and may specify or limit the territorial jurisdiction of any such officer.

  • R.S., 1985, c. B-3, s. 184
  • 1993, c. 28, s. 78
  • 2002, c. 7, s. 84

Marginal note:Assignment of judges to bankruptcy work by Chief Justice

  •  (1) The Chief Justice of the court, and in the Province of Quebec the Chief Justice or the Associate Chief Justice in the district to which he was appointed, may, if in his opinion it is advisable or necessary for the good administration of this Act, nominate or assign one or more of the judges of the court to exercise the judicial powers and jurisdiction conferred by this Act that may be exercised by a single judge, and the judgment, decision or order of a judge so nominated or assigned shall be deemed to be the judgment, decision or order of the court, and a reference in this Act to the court applies to any judge exercising the powers and jurisdiction of the court.

  • Marginal note:No diminution of powers

    (2) Nothing in this section diminishes or affects the powers or jurisdiction of the court or of any of the judges thereof not so specially nominated or assigned.

  • R.S., c. B-3, s. 155

Marginal note:Exercise of power by judges of other courts on appointment by Minister

 The Minister may, if in his opinion it is advisable or necessary for the proper administration of this Act, authorize any district, county or other judge to exercise any or all of the powers and jurisdiction of the court or of a judge or registrar thereof, subject to any limitation or condition, and any judge so authorized shall be deemed a judge or registrar, as the case may be, of the court having jurisdiction in bankruptcy, and references to the court, to the judge of the court or to the registrar apply to that district, county or other judge according to the terms of his authority.

  • R.S., c. B-3, s. 156

Authority of the Courts

Marginal note:Seal of court

  •  (1) Every court shall have a seal describing the court, and judicial notice shall be taken of the seal and of the signature of the judge or registrar of the court in all legal proceedings.

  • Marginal note:Court not subject to be restrained

    (2) The courts are not subject to be restrained in the execution of their powers under this Act by the order of any other court.

  • Marginal note:Power of judge in chambers

    (3) Subject to this Act and to the General Rules, the judge of a court may exercise in chambers the whole or any part of his jurisdiction.

  • Marginal note:Periodical sittings

    (4) Periodical sittings for the transaction of the business of courts shall be held at such times and places and at such intervals as the court directs.

  • Marginal note:Court may review, etc.

    (5) Every court may review, rescind or vary any order made by it under its bankruptcy jurisdiction.

  • Marginal note:Enforcement of orders

    (6) Every order of a court may be enforced as if it were a judgment of the court.

  • Marginal note:Transfer of proceedings to another division

    (7) The court, on satisfactory proof that the affairs of the bankrupt can be more economically administered within another bankruptcy district or division, or for other sufficient cause, may by order transfer any proceedings under this Act that are pending before it to another bankruptcy district or division.

  • Marginal note:Trial of issue, etc.

    (8) The court may direct any issue to be tried or inquiry to be made by any judge or officer of any of the courts of the province, and the decision of that judge or officer is subject to appeal to a judge in bankruptcy, unless the judge is a judge of a superior court when the appeal shall, subject to section 193, be to the Court of Appeal.

  • Marginal note:Formal defect not to invalidate proceedings

    (9) No proceeding in bankruptcy shall be invalidated by any formal defect or by any irregularity, unless the court before which an objection is made to the proceeding is of opinion that substantial injustice has been caused by the defect or irregularity and that the injustice cannot be remedied by any order of that court.

  • Marginal note:Proceedings taken in wrong court

    (10) Nothing in this section invalidates any proceedings by reason of their having been commenced, taken or carried on in the wrong court, but the court may at any time transfer the proceedings to the proper court.

  • Marginal note:Court may extend time

    (11) Where by this Act the time for doing any act or thing is limited, the court may extend the time either before or after the expiration thereof on such terms, if any, as it thinks fit to impose.

  • Marginal note:Court may dispense with certain requirements respecting notices

    (12) Where in the opinion of the court the cost of preparing statements, lists of creditors or other material required by this Act to be sent with notices to creditors, or the cost of sending the material or notices, is unjustified in the circumstances, the court may give leave to omit the material or any part thereof or to send the material or notices in such manner as the court may direct.

  • R.S., 1985, c. B-3, s. 187
  • 1992, c. 1, s. 20, c. 27, s. 66
  • 2004, c. 25, s. 87
 
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