Bankruptcy and Insolvency Act

Marginal note:Filing of proposal

• 62 (1) If a proposal is made in respect of an insolvent person, the trustee shall file with the official receiver a copy of the proposal and the prescribed statement of affairs.

• Marginal note:Determination of claims

  (1.1) Except in respect of claims referred to in subsection 14.06(8), where a proposal is made in respect of an insolvent person, the time with respect to which the claims of creditors shall be determined is the time of the filing of

  • (a) the notice of intention; or

  • (b) the proposal, if no notice of intention was filed.

• Marginal note:Determination of claims re bankrupt

  (1.2) Except in respect of claims referred to in subsection 14.06(8), where a proposal is made in respect of a bankrupt, the time with respect to which the claims of creditors shall be determined is the date on which the bankrupt became bankrupt.

• Marginal note:On whom approval binding

  (2) Subject to subsection (2.1), a proposal accepted by the creditors and approved by the court is binding on creditors in respect of

  • (a) all unsecured claims; and

  • (b) the secured claims in respect of which the proposal was made and that were in classes in which the secured creditors voted for the acceptance of the proposal by a majority in number and two thirds in value of the secured creditors present, or represented by a proxyholder, at the meeting and voting on the resolution to accept the proposal.

• Marginal note:When insolvent person is released from debt

  (2.1) A proposal accepted by the creditors and approved by the court does not release the insolvent person from any particular debt or liability referred to in subsection 178(1) unless the proposal explicitly provides for the compromise of that debt or liability and the creditor in relation to that debt or liability voted for the acceptance of the proposal.

• Marginal note:Certain persons not released

  (3) The acceptance of a proposal by a creditor does not release any person who would not be released under this Act by the discharge of the debtor.