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StatuteBankruptcy and Insolvency Act

Section 233 — Bankruptcy and Insolvency Act: Enforcement of order in default of debtor

Text of the provision Official document

A registered creditor may apply by notice of motion to the court where a debtor defaults in complying with any order or direction of the court; any other proceeding for the recovery of money is brought against the debtor; the debtor has, after the consolidation order was made, incurred further debts totalling in excess of five hundred dollars; 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 the debtor has property or funds that should be made available for the satisfaction of the consolidation order. A registered creditor may apply ex parte to the court where a debtor 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 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. On the application referred to in subsection (1) or (2), the court may 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 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. 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. 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. 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.

Official source: laws-lois.justice.gc.ca

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Statutory text from an official public source. Informational content — does not replace advice from a qualified lawyer.