PART VAdministration of Estates (continued)
Marginal note:Creditors may override directions of inspectors
119 (1) Subject to this Act, the trustee shall in the administration of the property of the bankrupt and in the distribution thereof among his creditors have regard to any directions that may be given by resolution of the creditors at any general meeting or by the inspectors, and any directions so given by the creditors shall in case of conflict be deemed to override any directions given by the inspectors.
Marginal note:Decisions of inspectors subject to review by court
(2) The decisions and actions of the inspectors are subject to review by the court at the instance of the trustee or any interested person and the court may revoke or vary any act or decision of the inspectors and it may give such directions, permission or authority as it deems proper in substitution thereof or may refer any matter back to the inspectors for reconsideration.
- R.S., c. B-3, s. 94
Marginal note:Inspector may not acquire property
120 (1) No inspector is, directly or indirectly, capable of purchasing or acquiring for himself or for another any of the property of the estate for which he is an inspector, except with the prior approval of the court.
Marginal note:Formal defects
(2) No defect or irregularity in the appointment of an inspector vitiates any act done by him in good faith.
Marginal note:Duty of inspectors
(3) In addition to the other duties that are attributed to them under this Act, the inspectors shall from time to time verify the bank balance of the estate, examine the trustee’s accounts and inquire into the adequacy of the security filed by the trustee and, subject to subsection (4), shall approve the trustee’s final statement of receipts and disbursements, dividend sheet and disposition of unrealized property.
Marginal note:Approval of trustee’s final statement by inspectors
(4) Before approving the final statement of receipts and disbursements of the trustee, the inspectors shall satisfy themselves that all the property has been accounted for and that the administration of the estate has been completed as far as can reasonably be done and shall determine whether or not the disbursements and expenses incurred are proper and have been duly authorized, and the fees and remuneration just and reasonable in the circumstances.
Marginal note:inspector’s expenses and fees
(5) Each inspector
Marginal note:Special services
(6) An inspector duly authorized by the creditors or by the other inspectors to perform special services for the estate may be allowed a special fee for those services, subject to approval of the court, which may vary that fee as it deems proper having regard to the nature of the services rendered in relation to the obligations of the inspector to the estate to act in good faith for the general interests of the administration of the estate.
- R.S., 1985, c. B-3, s. 120
- 1992, c. 27, s. 49
- 2001, c. 4, s. 30
- 2004, c. 25, s. 65(F)
- 2005, c. 47, s. 85
Marginal note:Claims provable
121 (1) All debts and liabilities, present or future, to which the bankrupt is subject on the day on which the bankrupt becomes bankrupt or to which the bankrupt may become subject before the bankrupt’s discharge by reason of any obligation incurred before the day on which the bankrupt becomes bankrupt shall be deemed to be claims provable in proceedings under this Act.
Marginal note:Contingent and unliquidated claims
(2) The determination whether a contingent or unliquidated claim is a provable claim and the valuation of such a claim shall be made in accordance with section 135.
Marginal note:Debts payable at a future time
(3) A creditor may prove a debt not payable at the date of the bankruptcy and may receive dividends equally with the other creditors, deducting only thereout a rebate of interest at the rate of five per cent per annum computed from the declaration of a dividend to the time when the debt would have become payable according to the terms on which it was contracted.
Marginal note:Family support claims
(4) A claim in respect of a debt or liability referred to in paragraph 178(1)(b) or (c) payable under an order or agreement made before the date of the initial bankruptcy event in respect of the bankrupt and at a time when the spouse, former spouse, former common-law partner or child was living apart from the bankrupt, whether the order or agreement provides for periodic amounts or lump sum amounts, is a claim provable under this Act.
- R.S., 1985, c. B-3, s. 121
- 1992, c. 27, s. 50
- 1997, c. 12, s. 87
- 2000, c. 12, s. 14
Marginal note:Claims provable in bankruptcy following proposal
122 (1) The claims of creditors under a proposal are, in the event of the debtor subsequently becoming bankrupt, provable in the bankruptcy for the full amount of the claims less any dividends paid thereon pursuant to the proposal.
(2) If interest on any debt or sum certain is provable under this Act but the rate of interest has not been agreed on, the creditor may prove interest at a rate not exceeding five per cent per annum to the date of the bankruptcy from the time the debt or sum was payable, if evidenced by a written document, or, if not so evidenced, from the time notice has been given the debtor of the interest claimed.
- R.S., 1985, c. B-3, s. 122
- 2004, c. 25, s. 66(E)
Marginal note:Proof in respect of distinct contracts
123 Where a bankrupt was, at the date of the bankruptcy, liable in respect of distinct contracts as a member of two or more distinct firms, or as a sole contractor and also as member of a firm, the circumstance that the firms are in whole or in part composed of the same individuals, or that the sole contractor is also one of the joint contractors, shall not prevent proof, in respect of the contracts, against the properties respectively liable on the contracts.
- R.S., c. B-3, s. 96
Proof of Claims
Marginal note:Creditors shall prove claims
Marginal note:Proof by delivery
(2) A claim shall be proved by delivering to the trustee a proof of claim in the prescribed form.
Marginal note:Who may make proof of claims
(3) The proof of claim may be made by the creditor himself or by a person authorized by him on behalf of the creditor, and, if made by a person so authorized, it shall state his authority and means of knowledge.
Marginal note:Shall refer to account
(4) The proof of claim shall contain or refer to a statement of account showing the particulars of the claim and any counter-claim that the bankrupt may have to the knowledge of the creditor and shall specify the vouchers or other evidence, if any, by which it can be substantiated.
(5) [Repealed, 2005, c. 47, s. 86]
- R.S., 1985, c. B-3, s. 124
- 2005, c. 47, s. 86
Marginal note:Penalty for filing false claim
125 Where a creditor or other person in any proceedings under this Act files with the trustee a proof of claim containing any wilfully false statement or wilful misrepresentation, the court may, in addition to any other penalty provided in this Act, disallow the claim in whole or in part as the court in its discretion may see fit.
- R.S., c. B-3, s. 97
Marginal note:Who may examine proofs
Marginal note:Worker’s wage claims
(2) Proofs of claims for wages of workers and others employed by the bankrupt may be made in one proof by the bankrupt, by someone on the bankrupt’s behalf, by a representative of a federal or provincial ministry responsible for labour matters, by a representative of a union representing workers and others employed by the bankrupt or by a court-appointed representative, and that proof is to be made by attaching to it a schedule setting out the names and addresses of the workers and others and the amounts severally due to them, but that proof does not disentitle any worker or other wage earner to file a separate proof on his or her own behalf.
- R.S., 1985, c. B-3, s. 126
- 1997, c. 12, s. 88
- 2005, c. 47, s. 87
Proof by Secured Creditors
Marginal note:Proof by secured creditor
Marginal note:May prove whole claim on surrender
(2) Where a secured creditor surrenders his security to the trustee for the general benefit of the creditors, he may prove his whole claim.
- R.S., 1985, c. B-3, s. 127
- 2004, c. 25, s. 67(F)
- Date modified: