Bankruptcy and Insolvency Act
Sections and provisions with full text and the judgments that cite each one.
Section 1 — Short title
This Act may be cited as the Bankruptcy and Insolvency Act .
Section 2 — Definitions
In this Act, affidavit includes statutory declaration and solemn affirmation; ( affidavit ) aircraft objects [Repealed, 2012, c. 31, s. 414] application , with respect to a bankruptcy application…
Section 2.1 — Designation of beneficiary
A change in the designation of a beneficiary in an insurance contract is deemed to be a disposition of property for the purpose of this Act.
Section 2.2 — Superintendent’s division office
Any notification, document or other information that is required by this Act to be given, forwarded, mailed, sent or otherwise provided to the Superintendent, other than an application for a licence…
Section 3
[Repealed, 2005, c. 47, s. 4]
Section 4 — Definitions
In this section, entity means a person other than an individual; ( entité ) related group means a group of persons each member of which is related to every other member of the group; ( groupe lié )…
Section 4.1 — Binding on Her Majesty
This Act is binding on Her Majesty in right of Canada or a province.
Section 4.2 — Good faith
Any interested person in any proceedings under this Act shall act in good faith with respect to those proceedings. If the court is satisfied that an interested person fails to act in good faith, on…
Section 5 — Appointment
The Governor in Council shall appoint a Superintendent of Bankruptcy to hold office during good behaviour for a term of not more than five years, but the Superintendent may be removed from office by…
Section 6 — Outside investigations
The Superintendent may engage any persons that the Superintendent considers advisable to conduct any inquiry or investigation or to take any other necessary action outside of the office of the…
Section 7 and 8
[Repealed, 1992, c. 27, s. 6]
Section 9 — Appointment of employees
Such employees as are required to assist the Superintendent to perform his functions under this Act shall be appointed in accordance with the Public Service Employment Act .
Section 10 — Investigations or inquiries by Superintendent
If, on information supplied by an official receiver, trustee or other person, the Superintendent suspects, on reasonable grounds, that a person has, in connection with any estate or matter to which…
Section 11 — Reporting offence to provincial authority
Where after an investigation pursuant to section 10 or otherwise the Superintendent has obtained evidence of an offence having been committed in connection with an estate or matter to which this Act…
Section 11.1 — Public records
The Superintendent shall keep, or cause to be kept, in such form as the Superintendent deems appropriate and for the prescribed period, a public record of proposals, bankruptcies, licences issued to…
Section 12 — Bankruptcy districts and divisions
Each of the provinces constitutes one bankruptcy district for the purposes of this Act but the Governor in Council may divide any bankruptcy district into two or more bankruptcy divisions and name or…
Section 13 — Application for licence
A person who wishes to obtain a licence to act as a trustee shall file with the Superintendent an application for a licence in the prescribed form. The Superintendent, after such investigation…
Section 13.1 — Form of licence
A licence shall be in the prescribed form; specify the bankruptcy district or part thereof in which the trustee is entitled to act; and be subject to such conditions and limitations as the…
Section 13.2 — Fees payable
Prior to the issue of a licence, the applicant shall pay such fees as may be prescribed. Each year, starting with the year in which a licence is issued to a trustee, the trustee shall pay the…
Section 13.3 — Where trustee is not qualified to act
Except with the permission of the court and on such conditions as the court may impose, no trustee shall act as trustee in relation to the estate of a debtor where the trustee is, or at any time…
Section 13.4 — Trustee may act for secured creditor
No trustee may, while acting as the trustee of an estate, act for or assist a secured creditor to assert a claim against the estate or to realize or otherwise deal with a security that the secured…
Section 13.5 — Code of Ethics
A trustee shall comply with the prescribed Code of Ethics.
Section 13.6 — Persons disqualified from working for trustee
A trustee shall not engage the services of a person whose trustee licence has been cancelled under paragraph 13.2(5)(a) or subsection 14.01(1); or who is the subject of a direction made by the…
Section 14 — Appointment of trustee by creditors
The creditors may, at any meeting by special resolution, appoint or substitute another licensed trustee for the trustee named in an assignment, a bankruptcy order or a proposal, or otherwise…
Section 14.01 — Decision affecting licence
If, after making or causing to be made an inquiry or investigation into the conduct of a trustee, it appears to the Superintendent that a trustee has not properly performed the duties of a trustee or…
Section 14.02 — Notice to trustee
Before deciding whether to exercise any of the powers referred to in subsection 14.01(1), the Superintendent shall send the trustee written notice of the powers that the Superintendent may exercise…
Section 14.03 — Conservatory measures
Subject to subsection (2), the Superintendent may, for the protection of an estate, the rights of the creditors or the debtor, direct a person to deal with property of the estate described in the…
Section 14.04 — Removal and appointment
The court, on the application of any interested person, may for cause remove a trustee and appoint another licensed trustee in the trustee’s place.
Section 14.05 — Where there is no licensed trustee, etc.
Where a debtor resides or carries on business in a locality in which there is no licensed trustee, and no licensed trustee can be found who is willing to act as trustee, the court or the official…
Section 14.06 — No trustee is bound to act
No trustee is bound to assume the duties of trustee in matters relating to assignments, bankruptcy orders or proposals, but having accepted an appointment in relation to those matters the trustee…
Section 14.07 — Effect of defect or irregularity in appointment
No defect or irregularity in the appointment of a trustee vitiates any act done by the trustee in good faith.
Section 14.08 — Majority of officers and directors must hold licences
A body corporate may hold a licence as a trustee only if a majority of its directors and a majority of its officers hold licences as trustees.
Section 14.09 — Acts of body corporate
A body corporate that holds a licence as a trustee may perform the duties and exercise the powers of a trustee only through a director or officer of the body corporate who holds a licence as a…
Section 14.1 — Not carrying on business of trust company
Every body corporate that is incorporated by or under an Act of Parliament and that holds a licence as a trustee may carry on the business of a trustee anywhere in Canada and shall not, in respect of…
Section 15 — Official name in bankruptcy and proposal proceedings
The official name of a trustee acting in bankruptcy proceedings is “The Trustee of the Estate of ( insert name of the bankrupt ), a bankrupt”, and the official name of a trustee acting with respect…
Section 15.1 — Declaration
A trustee is deemed to be a trustee for the purposes of the definition trustee in section 2 of the Criminal Code .
Section 16 — Security to be given by trustee
Every trustee duly appointed shall, as soon as they are appointed, give security in cash or by bond or suretyship of a guaranty company satisfactory to the official receiver for the due accounting…
Section 17 — Property to be delivered to trustee
Where a person has in his possession or power any property of the bankrupt that he is not by law entitled to retain as against the bankrupt or the trustee, that person shall deliver the property to…
Section 18 — Conservatory measures
The trustee may when necessary in the interests of the estate of the bankrupt take conservatory measures and summarily dispose of property that is perishable or likely to depreciate rapidly in value;…
Section 19 — Legal advice or action before first meeting
The trustee may prior to the first meeting of creditors obtain such legal advice and take such court proceedings as he may consider necessary for the recovery or protection of the property of the…
Section 20 — Divesting property by trustee
The trustee may, with the permission of the inspectors, divest all or any part of the trustee’s right, title or interest in any real property or immovable of the bankrupt by a notice of quit claim or…
Section 21 — Verifying bankrupt’s statement of affairs
The trustee shall verify the bankrupt’s statement of affairs referred to in paragraph 158(d).
Section 22 — Duties regarding returns
The trustee is not liable to make any return that the bankrupt was required to make more than one year prior to the commencement of the calendar year, or the fiscal year of the bankrupt where that is…
Section 23 — Trustee to permit inspection of records
The trustee shall at all reasonable times permit any authorized person to inspect the books and papers of the bankrupt in order to prepare or verify returns that the bankrupt is by statute required…
Section 24 — Insuring property
The trustee shall forthwith temporarily insure and keep insured in his official name all the insurable property of the bankrupt, for such amount and against such hazards as he may deem advisable…
Section 25 — Trust account
When acting under the authority of this Act, a trustee shall, without delay, deposit in a bank all funds received for an estate in a separate trust account for each estate. The trustee may deposit…
Section 26 — Books to be kept by trustee
A trustee shall keep proper books and records of the administration of each estate to which the trustee is appointed, in which shall be entered a record of all moneys received or disbursed by the…
Section 27 — Reports by trustee
The trustee shall from time to time report, when required by the inspectors, to every creditor, when required by any specific creditor, to the creditor, and when required by the Superintendent, to…
Section 28 — Documents to be forwarded to Superintendent
The trustee shall, without delay after their receipt or preparation, send to the Superintendent, in the prescribed manner, true copies of the documents referred to in section 155 and a true copy of…
Section 29 — Duty of trustee on expiration of licence or removal
Where the licence of a trustee has been cancelled or suspended, or has ceased to be valid by reason of failure to pay fees, a trustee has been removed from continuing the administration of an estate,…