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Bankruptcy and Insolvency General Rules (C.R.C., c. 368)

Regulations are current to 2022-06-20 and last amended on 2011-03-25. Previous Versions

Bankruptcy and Insolvency General Rules

C.R.C., c. 368

BANKRUPTCY AND INSOLVENCY ACT

Bankruptcy and Insolvency General Rules

Interpretation

 The definitions in this section apply in these Rules.

Act

Act means the Bankruptcy and Insolvency Act. (Loi)

business hours

business hours, in relation to a Division Office, means the hours during which the Division Office is open to the public from Monday to Friday, holidays excepted, as posted by that Division Office. (heures d’ouverture)

directive

directive means a directive issued by the Superintendent pursuant to subsection 5(4) of the Act. (instructions)

Division Office

Division Office means the office of the Superintendent, Department of Industry, for the bankruptcy division in which the proceedings were commenced. (bureau de division)

judge

judge means a judge of a court having jurisdiction in bankruptcy under sections 183 to 186 of the Act. (juge)

petition

petition[Repealed, SOR/2007-61, s. 1]

registrar

registrar means a person appointed or assigned as a registrar in bankruptcy under section 184 of the Act. (registraire)

tariff

tariff means the tariff of costs set out in the schedule. (tarif)

taxing officer

taxing officer means the registrar or other officer appointed or assigned under section 184 of the Act for the taxation or fixing of costs or the passing of accounts. (fonctionnaire taxateur)

  • SOR/92-579, s. 2
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 1

 A stock exchange that is regulated by an Act of Parliament or of the legislature of a province is prescribed for the purposes of the definition income trust in section 2 of the Act.

  • SOR/2009-218, s. 1

 The MFDA Investor Protection Corporation is a prescribed body for the purposes of the definition customer compensation body in section 253 of the Act.

  • SOR/2011-94, s. 1

General

 Documents that by the Act are to be prescribed must be in the form prescribed, with any modifications that the circumstances require and subject to any deviations permitted by section 32 of the Interpretation Act, and must be used in proceedings under the Act.

  • SOR/92-579, s. 3
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 2(E)

 In cases not provided for in the Act or these Rules, the courts shall apply, within their respective jurisdictions, their ordinary procedure to the extent that that procedure is not inconsistent with the Act or these Rules.

  • SOR/98-240, s. 1

 If a period of less than six days is provided for the doing of an act or the initiating of a proceeding under the Act or these Rules, calculation of the period does not include Saturdays or holidays.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
  •  (1) Subject to subsection (2), a notice or other document that is received by a Division Office outside of its business hours is deemed to have been received

    • (a) on the next business day of that Division Office, if it was received

      • (i) between the end of business hours and midnight, local time, on a business day, or

      • (ii) on a Saturday or holiday; or

    • (b) at the beginning of business hours of that Division Office, if it was received between midnight and the beginning of business hours, local time, on a business day.

  • (2) Subsection (1) does not apply to documents related to proceedings under Part III of the Act that are filed by facsimile.

  • SOR/78-389, s. 1
  • SOR/92-579, s. 4
  • SOR/98-240, s. 1
  • SOR/2005-284, s. 1
  •  (1) Unless otherwise provided in the Act or these Rules, every notice or other document given or sent pursuant to the Act or these Rules must be served, delivered personally, or sent by mail, courier, facsimile or electronic transmission.

  • (2) Unless otherwise provided in these Rules, every notice or other document given or sent pursuant to the Act or these Rules

    • (a) must be received by the addressee at least four days before the event to which it relates, if it is served, delivered personally, or sent by facsimile or electronic transmission; or

    • (b) must be sent to the addressee at least 10 days before the event to which it relates, if it is sent by mail or by courier.

  • (3) A trustee, receiver or administrator who gives or sends a notice or other document shall prepare an affidavit, or obtain proof, that it was given or sent, and shall retain the affidavit or proof in their files.

  • (4) The court may, on an ex parte application, exempt any person from the application of subsection (2) or order any terms and conditions that the court considers appropriate, including a change in the time limits.

  • SOR/98-240, s. 1
  • SOR/2007-61, ss. 3(E), 63(E)

 An assignment, proposal or notice of intention that is respectively offered, lodged or filed pursuant to the Act must be offered, lodged or filed by service, personal delivery, mail, courier, facsimile or electronic transmission.

  • SOR/78-389, s. 1
  • SOR/98-240, s. 1

 An interim receiver, a trustee, an administrator of a consumer proposal, an official receiver or a representative of the Superintendent is not required to be represented by a barrister or solicitor or, in the Province of Quebec, an advocate when appearing before a registrar on any court proceeding under the Act.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 4(E)

Court Proceedings

  •  (1) All proceedings used in court must be dated and entitled in the name of the court in which they are used, together with the words “in Bankruptcy and Insolvency”.

  • (2) Every document used in the filing of a bankruptcy application or used after the filing of an assignment must be entitled “In the Matter of the Bankruptcy of ...”.

  • (3) Every document used in the filing of a proposal before bankruptcy must be entitled “In the Matter of the Proposal of ...”.

  • (4) Every document used in the course of a receivership must be entitled “In the Matter of the Receivership of ...”.

  • (5) Unless the Chief Justice, Associate Chief Justice or Commissioner, as the case may be, referred to in section 184 of the Act otherwise directs, every document that is required to be filed in court must first be filed at the office of the registrar.

  • (6) If the court deems necessary that any notice be sent to the Superintendent in any proceeding before it, a copy of that notice shall be sent to the Division Office.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E), 64

 If any proceedings are transferred from one court to another court under subsection 187(7) or (10) of the Act, the registrar of the former court shall send the file to the registrar of the latter court, with a copy of the order of transfer attached to it.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)

Motions

 Subject to these Rules, every application to the court must be made by motion unless the court orders otherwise.

  • SOR/98-240, s. 1

 The Superintendent may intervene in any application to the court by filing a notice of intervention with the court.

  • SOR/98-240, s. 1

 Subject to any order of the court given in exigent circumstances, a party who makes a motion must, at least one day before the day set for the hearing of the motion, file with the court

  • (a) the original of the notice of motion, or the motion, as the case may be;

  • (b) every affidavit in support of the notice of motion or the motion, as the case may be; and

  • (c) proof of service, if any, of the documents described in paragraphs (a) and (b).

  • SOR/98-240, s. 1
  • SOR/2005-284, s. 2

Witnesses and Depositions

  •  (1) A party to any court proceedings may, with leave of the court, examine the other party or any other person and require them to produce documents.

  • (2) A party to any court proceedings may, with leave of the court, require the attendance of any person for examination on an affidavit that the person filed with the court.

  • (3) An application for leave of the court under subsection (1) or (2) may be made ex parte.

  • SOR/98-240, s. 1

Search, Seizure and Arrest

 A warrant issued under the Act, including a warrant of seizure and a search warrant, must be executed by the executing officer.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 5(E)
  •  (1) A bankrupt or other person who is apprehended under section 166 of the Act shall be kept in the place of custody set out in the warrant, pending the order of the court.

  • (2) As soon as a bankrupt or other person has been handed over to the authority at a place of custody, the person who made the apprehension under section 166 of the Act or the arrest under section 168 of the Act shall so report to the court.

  • (3) After the report mentioned in subsection (2) is made, the court may make an order fixing a time and place for the examination of the bankrupt or other person by the official receiver, if section 166 of the Act applies, or by the court, if section 168 of the Act applies.

  • (4) As soon as a time and place are set for the examination of a bankrupt or other person by the official receiver pursuant to subsection (3), the registrar shall so notify the official receiver and the trustee.

  • (5) As soon as a time and place are set for the examination of a bankrupt, other than an examination referred to in subsection (4), the registrar shall so notify the trustee and the person who applied for the examination.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)

 Subject to any contrary order of the court, a person in possession or control of any property seized under the Act or these Rules shall immediately deliver it to the trustee or the interim receiver.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 6(E)

Costs and Taxation

 All bills of costs for legal services – other than those that do not exceed $2,500 in aggregate, excluding applicable federal and provincial taxes – must be taxed by the taxing officer.

  • SOR/98-240, s. 1
  • SOR/2009-218, s. 2

 A bill of costs must describe, in a fair, reasonable and detailed manner, the nature of the legal services rendered.

  • SOR/98-240, s. 1

 The bill of costs shall not be taxed unless the trustee is represented at the taxation or the bill of costs has attached to it a declaration, signed by the trustee, stating that

  • (a) [Repealed, SOR/2009-218, s. 3]

  • (b) the services have been duly authorized and duly rendered; and

  • (c) the charges are reasonable in the trustee’s opinion.

  • SOR/98-240, s. 1
  • SOR/2009-218, s. 3

 In determining the amount of costs to be allowed, the taxing officer shall determine whether

  • (a) the legal services have been duly rendered;

  • (b) the charges are reasonable and, if applicable, are in accordance with the tariff;

  • (c) the legal services rendered are accounted for, and are not services that should have been rendered by the trustee; and

  • (d) the legal services have been authorized and approved in accordance with the Act, if the Act so requires.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)

 When a bill of costs has been taxed, the taxing officer shall make a statement to that effect on the bill and shall sign that statement, and a bill of costs so signed has the same effect as a judgment of the court and may be enforced in the same manner as a judgment.

  • SOR/98-240, s. 1

 The court may, on ex parte application by a trustee, order a barrister or solicitor or, in the Province of Quebec, an advocate to submit a bill of costs to the trustee, or to bring the bill of costs into court to be taxed, and, if the barrister, solicitor or advocate fails to comply, the court may, on ex parte application by the trustee, order that the trustee distribute the proceeds of the estate that the trustee possesses without regard to the barrister, solicitor or advocate’s bill of costs.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 7
  •  (1) The barrister or solicitor or, in the Province of Quebec, the advocate shall give to the trustee, to any other person who is liable for payment of the bill of costs and, on request, to the Division Office, a notice of the time and place of the taxation, at least 10 days before the day set for the taxation.

  • (2) A certified copy of the bill of costs to be presented for taxation must be attached to the notice referred to in subsection (1).

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 8
  •  (1) A decision of a taxing officer on the taxation of a bill of costs may be appealed to the court if a notice stating the grounds of appeal is given to the opposite party and the Division Office within 10 days after the day of the decision.

  • (2) The judge who hears the appeal may retax the bill of costs as if it were being taxed for the first time.

  • SOR/98-240, s. 1

 [Repealed, SOR/2009-218, s. 4]

Fees of Court Officers

 If the amount of the fees payable to a court officer is contested, the judge shall fix the amount.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
 
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