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Orderly Payment of Debts Regulations (C.R.C., c. 369)

Regulations are current to 2024-05-01 and last amended on 2015-04-01. Previous Versions

Orderly Payment of Debts Regulations

C.R.C., c. 369

BANKRUPTCY AND INSOLVENCY ACT

Orderly Payment of Debts Regulations

 [Repealed, SOR/2005-168, s. 2]

Interpretation

 In these Regulations, Act means Part X of the Bankruptcy and Insolvency Act.

  • SOR/92-578, s. 1
  • SOR/2005-168, s. 3(F)

General

 On application by a debtor for a consolidation order pursuant to subsection 219(1) of the Act, the debtor shall pay the clerk an application fee of $20 and the clerk shall issue a receipt for that amount to the debtor.

  • SOR/89-158, s. 1

 All fees paid under the Act shall be kept in an account entirely separate from moneys collected under the statute establishing the court.

  •  (1) An affidavit of a debtor filed with the clerk in accordance with subsection 219(2) of the Act operates as an application for a consolidation order.

  • (2) The affidavit of a debtor shall be filed in duplicate.

  • SOR/2005-168, s. 4
  • SOR/2015-85, s. 1(F)

 Where a creditor is shown to be related to the debtor, the clerk may, before entering the creditor’s name in the register, require an affidavit from the creditor proving the alleged debt.

  • SOR/2005-168, s. 5
  •  (1) The clerk shall

    • (a) on filing the affidavit referred to in subsection 219(2) of the Act and entering the particulars it contains in the register in accordance with paragraph 220(1)(a) of the Act, open a consolidation account in the name of the debtor; and

    • (b) credit to the consolidation account all moneys paid into court under the consolidation order made in the name of the debtor.

  • (2) The clerk may, before distributing any moneys credited to a consolidation account, first deduct the amount required for postage for the mailing of any notices and forms under the Act.

  • SOR/89-158, s. 2

 The original consolidation order shall be filed with the clerk of the court in which it is made and shall bear the number of the debtor’s original affidavit.

  • SOR/2015-85, s. 2(F)
  •  (1) Where the clerk is satisfied that the affairs of a debtor may be better administered in a judicial district or centre in a province other than the judicial district or centre in which a consolidation order was originally issued, the clerk may, after giving notice to the debtor and the registered creditors, transfer the proceedings to that other judicial district or centre.

  • (2) Where the clerk is satisfied that the affairs of a debtor may be better administered in a province where the Act is in force other than the province in which a consolidation order was originally issued, the clerk may, after giving notice to the debtor and the registered creditors and after distributing all of the moneys paid into court by or on behalf of the debtor, transfer the proceedings to that other province.

  • SOR/89-158, s. 3
  • SOR/92-578, s. 2

 Any application to the court under the Act shall be to the next sitting thereof, unless the sitting is to be held within seven days of the application, or unless otherwise ordered by the court, or agreed to by the parties concerned.

 The judge of the court may hear any cause or matter in chambers.

 On any notice of motion under the Act no affidavit need be filed unless the clerk deems one necessary, and if he deems one necessary a copy of the affidavit shall be served with the notice of motion.

 A notice of motion under the Act shall be served on the debtor and all the registered creditors, unless it is otherwise provided in the Act.

 Where, pursuant to subsection 231(1) of the Act, the clerk gives notice to the debtor and the creditor and to each registered creditor of a new claim against the debtor, the clerk shall allow a period of 30 days for disputing the new claim.

  • SOR/89-158, s. 4
  •  (1) Where a consolidation order is varied pursuant to subsection 227(1), 231(3) or 234(4) of the Act,

    • (a) a Notice of Variation of Consolidation Order in Form 11 of Schedule I shall be given to the debtor and the registered creditors; and

    • (b) a copy of the notice shall be attached to the consolidation order in the court file.

  • (2) The clerk shall endorse on the face of the consolidation order

    • (a) the date and terms of any variation; and

    • (b) the name and title of the authority ordering the variation.

  • SOR/89-158, s. 5
  • SOR/92-578, s. 3

 A consolidation order shall be terminated

  • (a) where a debtor is in default and the clerk issues a Notice of Default in Form 18 of Schedule I; or

  • (b) where, under paragraph 233(3)(b) of the Act, the court makes an order permitting all registered creditors to proceed independently for the enforcement of their claims.

  • SOR/2005-168, s. 6

 An application by a debtor under subsection 233(5) of the Act to continue under a consolidation order on the grounds that the default of the debtor is due to circumstances beyond their control shall be by notice of motion.

  • SOR/2005-168, s. 7
  •  (1) A registered creditor who elects to rely on their security pursuant to section 232 of the Act shall, before relying on that security, file with the clerk an affidavit as to its value and, if the security is repossessed and sold or seized and sold, disclose to the clerk whether the proceeds received from the disposal of the security are in excess of the creditor’s claim.

  • (2) Where any registered creditor does not comply with the conditions set out in subsection (1), the court may direct that the security of that registered creditor be appraised by an appraiser appointed by the court.

  • SOR/2005-168, s. 8
  • SOR/2015-85, s. 3(F)

Sending of Notices

 Unless otherwise provided in these Regulations, every notice required by the Act or these Regulations to be given shall be sent by ordinary mail.

  • SOR/92-578, s. 4
  • SOR/2005-168, s. 9(F)

Duties of Clerk

 The clerk shall maintain

  • (a) a cash book in which, on each occasion when a payment is received from a debtor or disbursed by the court, he shall record

    • (i) the date of the payment,

    • (ii) the number of the consolidation order in respect of which the payment is made,

    • (iii) the name of the debtor,

    • (iv) the amount of the payment, and

    • (v) particulars of the payment; and

  • (b) a separate consolidation account sheet and a separate register sheet for each debtor.

  •  (1) The clerk shall deposit all payments on consolidation orders within the jurisdiction of the court in an account with

    • (a) a bank;

    • (b) a corporation other than a bank if deposits with that corporation

      • (i) are insured by the Canada Deposit Insurance Corporation, or

      • (ii) are insured or guaranteed under a provincial enactment that provides depositors with protection against the loss of moneys on deposit.

  • (2) In this section, bank means a bank as defined in the Bank Act.

  • SOR/84-356, s. 1
  • SOR/86-101, s. 1(F)

 [Repealed, SOR/89-158, s. 6]

 [Repealed, SOR/92-578, s. 5]

Dividends

  •  (1) The clerk shall deposit with the person designated by the province all unclaimed dividends and undistributed funds remaining in his hands and all interest, if any, on the money paid into court on account of the debts of the debtor and shall provide the person with a list of the names and the post office addresses, so far as known, of the creditors entitled to the unclaimed dividends, showing the amount payable to each creditor.

  • (2) The designated person referred to in subsection (1) shall, upon application by a creditor, pay to the creditor the appropriate dividend as shown on the list referred to in that subsection.

  • SOR/85-737, s. 1
  • SOR/86-101, s. 2(F)

Costs

 The costs of all proceedings before the court shall be in the absolute discretion of the court, but shall not exceed those taxable in a similar action in the court.

 There shall be no costs in respect of a hearing before the clerk unless the court otherwise orders.

Forms

  •  (1) The forms set out in Schedule I are the forms that shall be used in proceedings under the Act.

  • (2) The account forms set out in Schedule II are the forms that shall be used in maintaining accounts under the Act.

  • (3) Notwithstanding subsection (2), the accounts that relate to proceedings under the Act may be maintained by an electronic accounting system if the accounts comprise the same information as is required by the applicable forms in Schedule II.

  • SOR/89-158, s. 8

Court

 For the purposes of the Act and these Regulations, court means,

  • (a) in the Province of Saskatchewan, Her Majesty’s Court of Queen’s Bench for Saskatchewan;

  • (b) in the Province of Nova Scotia, the County Court;

  • (c) in the Province of British Columbia, the Supreme Court of British Columbia and the County Courts of Nanaimo, Vancouver, Victoria, Westminster, Yale, Cariboo, Prince Rupert, East Kootenay and West Kootenay;

  • (d) in the Northwest Territories, the Supreme Court of the Northwest Territories; and

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

  • SOR/78-386, s. 1
  • SOR/83-539, s. 1
  • SOR/2005-168, s. 10(F)

Miscellaneous

 In a province in which the Act is in force, the Act applies

  • (a) in respect of debts of the classes referred to in subsection 218(1) of the Act without the monetary limits set out therein; and

  • (b) in respect of debts of the classes that would otherwise be excluded by paragraphs 218(2)(a) and (b) of the Act.

  • SOR/81-2, s. 1
  • SOR/89-158, s. 9

 Notwithstanding section 28, the Act does not apply to the following classes of debts:

  • (a) in the Province of Nova Scotia,

    • (i) a claim for a lien or a judgment thereon under the Mechanics Lien Act, or

    • (ii) a claim for a lien or a judgment thereon under the Woodman’s Lien Act; and

  • (b) in the Northwest Territories,

    • (i) a claim for a lien or a judgment thereon under the Mechanics’ Lien Ordinance, or

    • (ii) a claim for a lien or a judgment thereon under the Miners’ Lien Ordinance.

 For the purpose of defraying administrative expenses, the clerk shall deduct 15 per cent from each payment that is made to a registered creditor in respect of a claim of that creditor under a consolidation order.

  • SOR/89-158, s. 10
  • SOR/92-578, s. 6
  • SOR/98-239, s. 1

Interest on Consolidation Orders

 Every consolidation order shall bear interest at the rate of five per cent per annum.

  • SOR/92-578, s. 7
 

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