What do you know about the Canadian Bankruptcy and Insolvency Act?
The Bankruptcy and Insolvency Act (BIA) governs all bankruptcies and proposals that take place in Canada. Sometimes informally referred to as “the Bankruptcy Act”, for individuals it is designed to help “honest but unfortunate debtors” overcome their financial challenges.
What is the purpose of the Bankruptcy and Insolvency Act?
The BIA provides a legislative framework to address both consumer and commercial insolvency situations. In bankruptcy, the Act provides for the liquidation of the bankrupt’s assets by a trustee and the distribution of the proceeds in a fair and orderly way among the creditors.
How does CCAA work?
The Companies’ Creditors Arrangement Act (CCAA) is a federal law that applies to insolvent corporations that owe in excess of $5 million. The law gives these companies short-term protection from their creditors so they can restructure their businesses and financial affairs.
Are bankruptcies public record in Canada?
The official bankruptcy records in Canada are compiled by the Office of the Superintendent of Bankruptcy Canada (OSB) and are public records. This means that any member of the public can access them via an internet search tool on the OSB website, although there is a fee, and searches must be very specific.
What qualifies as insolvency?
A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may be excluded as income under the “insolvency” exclusion. Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent.
What is a typical insolvency process in Canada?
Canada’s insolvency regime is composed primarily of two Acts, the BIA and the CCAA. The BIA provides the legislative framework to address personal and corporate insolvency. In a bankruptcy, a trustee liquidates the bankrupt’s assets and distributes the proceeds in a fair and orderly way among the creditors.
What is the difference between BIA and CCAA?
A CCAA plan of arrangement can be made with any particular class or classes of creditors, whereas a proposal under the BIA must include an arrangement with the debtor’s unsecured creditors. In both regimes, various classes of secured creditors may be involved.
Can a creditor take my house in Canada?
Yes, judgment can be obtained by creditors to take or seize your house in Canada to recover the payments you owe them.
Do bankruptcies get published in the newspaper?
Bankruptcy is Public Record While only your creditors and potentially your employer will need to be notified specifically that you filed bankruptcy, the fact that you did file is saved on a website called Public Access to Court Electronic Records (PACER).
What assets are included in insolvency?
Here’s what you need to know about estimating your asset values for claiming insolvency….These include:
- Bank account balances (include cash)
- Real property.
- Cars and other vehicles.
- Household goods and furnishings, such as appliances, electronics, and furniture.
How do I check my insolvency status?
Search may be conducted through e-insolvency Portal at https://e-insolvensi.mdi.gov.my.