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

Act current to 2020-11-02 and last amended on 2019-11-01. Previous Versions

PART XOrderly Payment of Debts (continued)

Marginal note:Enforcement of order in default of debtor

  •  (1) A registered creditor may apply by notice of motion to the court where

    • (a) a debtor defaults in complying with any order or direction of the court;

    • (b) any other proceeding for the recovery of money is brought against the debtor;

    • (c) the debtor has, after the consolidation order was made, incurred further debts totalling in excess of five hundred dollars;

    • (d) a judgment is recovered against the debtor larger in amount than a judgment to which this Part applies without the judgment creditor’s consent, and the judgment creditor refuses to permit his name to be added to the register; or

    • (e) the debtor has property or funds that should be made available for the satisfaction of the consolidation order.

  • Marginal note:Ex parte application

    (2) A registered creditor may apply ex parte to the court where a debtor

    • (a) is about to abscond or has absconded from the province in which the consolidation order was issued leaving personal property liable to seizure under execution; or

    • (b) with intent to defraud his creditors has attempted or is attempting to remove from the province in which the consolidation order was issued personal property liable to seizure under execution.

  • Marginal note:Proceedings authorized

    (3) On the application referred to in subsection (1) or (2), the court may

    • (a) authorize the registered creditor making the application to take on behalf of all the registered creditors such proceedings to enforce the consolidation order as the court deems advisable; or

    • (b) where it deems it advisable and on notice to all parties, make an order permitting all the registered creditors to proceed each independently of the others for the enforcement of their claims under the consolidation order.

  • Marginal note:Moneys applied to judgment

    (4) All moneys recovered as a result of proceedings taken pursuant to paragraph (3)(a) after payment of costs incurred thereby shall be paid into the court and shall be applied to the credit of the judgments against the debtor appearing in the register.

  • Marginal note:Proceedings where continuing default

    (5) Where a debtor defaults in making any payment into court required to be made under a consolidation order and the default continues for a period of three months, all the registered creditors are entitled to proceed forthwith, each independently of the others and without reference to the court, for the enforcement of their claims under the consolidation order, unless the court otherwise directs on being satisfied, on application by the debtor, that the circumstances giving rise to the default and to its continuation were beyond the control of the debtor.

  • Marginal note:Debtor not entitled to relief

    (6) Where any order has been made under paragraph (3)(b) or any proceedings have been commenced under subsection (5), the debtor under the consolidation order is not, without the leave of the court, entitled to any further relief under this Part during the currency of any claim against him entered in the register.

  • R.S., 1985, c. B-3, s. 233
  • 1997, c. 12, s. 116

Marginal note:Re-examination of debtor

  •  (1) A debtor or any registered creditor may at any time apply ex parte to the clerk for a further examination and hearing of the debtor in respect of his financial circumstances.

  • Marginal note:Idem

    (2) The further hearing referred to in subsection (1) may only be held

    • (a) with the leave of the clerk; or

    • (b) in the event of the refusal of the clerk, with leave of the court.

  • Marginal note:Notice of hearing

    (3) The clerk shall give all parties to the consolidation order at least thirty days notice of the time appointed for the hearing referred to in subsection (1).

  • Marginal note:Clerk may vary order, etc.

    (4) Where after considering the evidence presented at the further hearing referred to in subsection (1) the clerk is of the opinion that

    • (a) the terms of payment set out in the consolidation order, or

    • (b) the decision that the circumstances of the debtor do not warrant the immediate settling of any amounts or times of payment thereof,

    should be changed because of a change in the circumstances of the debtor, he may

    • (c) vary the order with respect to the amounts to be paid by the debtor into court or the times of payment thereof, or

    • (d) on notice of motion refer the matter to the court for settlement.

  • Marginal note:Application of section 227

    (5) Section 227 applies, with such modifications as the circumstances require, to a decision of the clerk under subsection (4).

  • R.S., 1985, c. B-3, s. 234
  • 1992, c. 1, s. 19

Marginal note:Disposition of moneys paid into court

  •  (1) Subject to subsection (3), the clerk shall distribute the moneys paid into court on account of the debts of a debtor at least once every three months.

  • Marginal note:Idem

    (2) The clerk shall distribute the money paid under subsection (1) rateably, or as nearly so as is practicable, among the registered creditors.

  • Marginal note:Payments less than five dollars

    (3) Except in the case of a final payment under a consolidation order, the clerk is not required to make a payment to any creditor if the amount thereof is less than five dollars.

  • R.S., c. B-3, s. 206

Marginal note:Oaths

  •  (1) The clerk may for the purposes of this Part examine any person under oath and may administer oaths.

  • Marginal note:Record

    (2) The clerk shall make a written record in summary form of all evidence given at a hearing.

  • R.S., c. B-3, s. 207

Marginal note:If assignment or bankruptcy order made

  •  (1) If a debtor in respect of whom a consolidation order has been issued under this Part makes an assignment under section 49, or if a bankruptcy order is made against the debtor under section 43, or if a proposal by the debtor is approved by the court having jurisdiction in bankruptcy under sections 59 to 61, any moneys that have been paid into court as required by the consolidation order and that have not yet been distributed to the registered creditors shall, immediately after the making of the assignment or bankruptcy order or the approval of the proposal, be distributed among those creditors by the clerk in the proportions to which they are entitled under the consolidation order.

  • Marginal note:Proceedings may be taken under other Parts

    (2) The fact that proceedings have been taken under this Part does not prevent the taking of proceedings by or against the debtor under the provisions of any other Part of this Act.

  • Marginal note:Idem

    (3) None of the provisions of Parts I to IX of this Act applies to proceedings under this Part.

  • R.S., 1985, c. B-3, s. 237
  • 2004, c. 25, s. 96

Marginal note:Appeal

 A decision or order of the court under this Part is subject to appeal in the same manner as if it were a judgment of the court in a civil action.

  • R.S., c. B-3, s. 209

Marginal note:Clerk to report

  •  (1) On the issue of any consolidation order, the clerk shall forward a copy thereof to the Superintendent.

  • Marginal note:Idem

    (2) The clerk shall give to the Superintendent all reports that the Superintendent may require for the administration of this Part.

  • R.S., 1985, c. B-3, s. 239
  • 1992, c. 27, s. 86

Marginal note:No dismissal, etc., of employees

 No employer shall dismiss, suspend, lay off or otherwise discipline a debtor by reason only that the debtor has applied for a consolidation order under this Part.

  • 1992, c. 27, s. 87
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