Bankruptcy and Insolvency Act
Sections and provisions with full text and the judgments that cite each one.
Section 30 — Powers exercisable by trustee with permission of inspectors
The trustee may, with the permission of the inspectors, do all or any of the following things: sell or otherwise dispose of for such price or other consideration as the inspectors may approve all or…
Section 31 — Borrowing powers with permission of court
With the permission of the court, an interim receiver, a receiver within the meaning of subsection 243(2) or a trustee may make necessary or advisable advances, incur obligations, borrow money and…
Section 32 — Trustee not obliged to carry on business
The trustee is not under obligation to carry on the business of the bankrupt where in his opinion the realizable value of the property of the bankrupt is insufficient to protect him fully against…
Section 33 — Reimbursement only of trustee’s disbursement advances
The court may make an order providing for the sale of any or all of the assets of the estate of the bankrupt, either by tender, private sale or public auction, setting out the terms and conditions of…
Section 34 — Trustee may apply to court for directions
A trustee may apply to the court for directions in relation to any matter affecting the administration of the estate of a bankrupt and the court shall give in writing such directions, if any, as to…
Section 35 — Redirection of mail
Subject to subsection (2), the trustee may, by sending to the Canada Post Corporation a notice in the prescribed form, and a copy of the trustee’s certificate of appointment, request that any mail…
Section 36 — Duty of former trustee on substitution
On the appointment of a substituted trustee, the former trustee shall without delay pass his or her accounts before the court and deliver to the substituted trustee all the property of the estate,…
Section 37 — Appeal to court against trustee
Where the bankrupt or any of the creditors or any other person is aggrieved by any act or decision of the trustee, he may apply to the court and the court may confirm, reverse or modify the act or…
Section 38 — Proceeding by creditor when trustee refuses to act
Where a creditor requests the trustee to take any proceeding that in his opinion would be for the benefit of the estate of a bankrupt and the trustee refuses or neglects to take the proceeding, the…
Section 39 — To be voted by creditors
The remuneration of the trustee shall be such as is voted to the trustee by ordinary resolution at any meeting of creditors. Where the remuneration of the trustee has not been fixed under subsection…
Section 40 — Disposal of unrealizable property
Any property of a bankrupt that is listed in the statement of affairs referred to in paragraph 158(d) or otherwise disclosed to the trustee before the bankrupt’s discharge and that is found incapable…
Section 41 — Application to court
When a trustee has completed the duties required of him with respect to the administration of the property of a bankrupt, he shall apply to the court for a discharge. The court may discharge a…
Section 42 — Acts of bankruptcy
A debtor commits an act of bankruptcy in each of the following cases: if in Canada or elsewhere he makes an assignment of his property to a trustee for the benefit of his creditors generally, whether…
Section 43 — Bankruptcy application
Subject to this section, one or more creditors may file in court an application for a bankruptcy order against a debtor if it is alleged in the application that the debt or debts owing to the…
Section 44 — Application against estate or succession
Subject to section 43, an application for a bankruptcy order may be filed against the estate or succession of a deceased debtor. After service of an application for a bankruptcy order on the executor…
Section 45 — Costs of application
If a bankruptcy order is made, the costs of the applicant shall be taxed and be payable out of the estate, unless the court otherwise orders. If the proceeds of the estate are not sufficient for the…
Section 46 — Appointment of interim receiver
The court may, if it is shown to be necessary for the protection of the estate of a debtor, at any time after the filing of an application for a bankruptcy order and before a bankruptcy order is…
Section 47 — Appointment of interim receiver
If the court is satisfied that a notice is about to be sent or was sent under subsection 244(1), it may, subject to subsection (3), appoint a trustee as interim receiver of all or any part of the…
Section 47.1 — Appointment of interim receiver
If a notice of intention has been filed under section 50.4 or a proposal has been filed under subsection 62(1), the court may at any time after the filing, subject to subsection (3), appoint as…
Section 47.2 — Orders respecting fees and expenses
If an appointment of an interim receiver is made under section 47 or 47.1, the court may make any order respecting the payment of fees and disbursements of the interim receiver that it considers…
Section 48 — Application of sections 43 to 46
Sections 43 to 46 do not apply to individuals whose principal occupation and means of livelihood is fishing, farming or the tillage of the soil or to any individual who works for wages, salary,…
Section 49 — Assignment for general benefit of creditors
An insolvent person or, if deceased, the executor or administrator of their estate or the liquidator of the succession, with the leave of the court, may make an assignment of all the insolvent…
Section 50 — Who may make a proposal
Subject to subsection (1.1), a proposal may be made by an insolvent person; a receiver, within the meaning of subsection 243(2), but only in relation to an insolvent person; a liquidator of an…
Section 50.1 — Secured creditor may file proof of secured claim
Subject to subsections (2) to (4), a secured creditor to whom a proposal has been made in respect of a particular secured claim may respond to the proposal by filing with the trustee a proof of…
Section 50.2 — Excluded secured creditor
A secured creditor to whom a proposal has not been made in respect of a particular secured claim may not file a proof of secured claim in respect of that claim.
Section 50.3 — Rights in bankruptcy
On the bankruptcy of an insolvent person who made a proposal to one or more secured creditors in respect of secured claims, any proof of secured claim filed pursuant to section 50.1 ceases to be…
Section 50.4 — Notice of intention
Before filing a copy of a proposal with a licensed trustee, an insolvent person may file a notice of intention, in the prescribed form, with the official receiver in the insolvent person’s locality,…
Section 50.5 — Trustee to help prepare proposal
The trustee under a notice of intention shall, between the filing of the notice of intention and the filing of a proposal, advise on and participate in the preparation of the proposal, including…
Section 50.6 — Order — interim financing
On application by a debtor in respect of whom a notice of intention was filed under section 50.4 or a proposal was filed under subsection 62(1) and on notice to the secured creditors who are likely…
Section 51 — Calling of meeting of creditors
The trustee shall call a meeting of the creditors, to be held within twenty-one days after the filing of the proposal with the official receiver under subsection 62(1), by sending in the prescribed…
Section 52 — Adjournment of meeting for further investigation and examination
Where the creditors by ordinary resolution at the meeting at which a proposal is being considered so require, the meeting shall be adjourned to such time and place as may be fixed by the chair to…
Section 53 — Creditor may assent or dissent
Any creditor who has proved a claim, whether secured or unsecured, may indicate assent to or dissent from the proposal in the prescribed manner to the trustee prior to the meeting, and any assent or…
Section 54 — Vote on proposal by creditors
The creditors may, in accordance with this section, resolve to accept or may refuse the proposal as made or as altered at the meeting or any adjournment thereof. For the purpose of subsection (1),…
Section 54.1 — Class — creditors having equity claims
Despite paragraphs 54(2)(a) and (b), creditors having equity claims are to be in the same class of creditors in relation to those claims unless the court orders otherwise and may not, as members of…
Section 55 — Creditors may provide for supervision of debtor’s affairs
At a meeting to consider a proposal, the creditors, with the consent of the debtor, may include such provisions or terms in the proposal with respect to the supervision of the affairs of the debtor…
Section 56 — Appointment of inspectors
The creditors may appoint one or more, but not exceeding five, inspectors of the estate of the debtor, who shall have the powers of an inspector under this Act, subject to any extension or…
Section 57 — Result of refusal of proposal
Where the creditors refuse a proposal in respect of an insolvent person, the insolvent person is deemed to have thereupon made an assignment; the trustee shall, without delay, file with the official…
Section 57.1 — Appointment of new trustee
Where a declaration has been made under subsection 50(12) or 50.4(11), the court may, if it is satisfied that it would be in the best interests of the creditors to do so, appoint a trustee in lieu of…
Section 58 — Application for court approval
On acceptance of a proposal by the creditors, the trustee shall within five days after the acceptance, apply to the court for an appointment for a hearing of the application for the court’s approval…
Section 59 — Court to hear report of trustee, etc.
The court shall, before approving the proposal, hear a report of the trustee in the prescribed form respecting the terms thereof and the conduct of the debtor, and, in addition, shall hear the…
Section 60 — Priority of claims
No proposal shall be approved by the court that does not provide for the payment in priority to other claims of all claims directed to be so paid in the distribution of the property of a debtor and…
Section 61 — Annulment of bankruptcy
The approval by the court of a proposal made after bankruptcy operates to annul the bankruptcy and to revest in the debtor, or in such other person as the court may approve, all the right, title and…
Section 62 — Filing of proposal
If a proposal is made in respect of an insolvent person, the trustee shall file with the official receiver a copy of the proposal and the prescribed statement of affairs. Except in respect of claims…
Section 62.1 — Default in performance of proposal
Where default is made in the performance of any provision in a proposal, the default is not waived by the inspectors, or if there are no inspectors, by the creditors, and the default is not remedied…
Section 63 — Receiving order on default, etc.
Where default is made in the performance of any provision in a proposal, or where it appears to the court that the proposal cannot continue without injustice or undue delay or that the approval of…
Section 64 — Removal of directors
The court may, on the application of any person interested in the matter, make an order removing from office any director of a debtor in respect of whom a notice of intention has been filed under…
Section 64.1 — Security or charge relating to director’s indemnification
On application by a person in respect of whom a notice of intention is filed under section 50.4 or a proposal is filed under subsection 62(1) and on notice to the secured creditors who are likely to…
Section 64.2 — Court may order security or charge to cover certain costs
On notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring that all or part of the property of a person in respect of whom a…
Section 65 — Where proposal is conditional on purchase of new securities
A proposal made conditional on the purchase of shares or securities or on any other payment or contribution by the creditors shall provide that the claim of any creditor who elects not to participate…
Section 65.1 — Certain rights limited
If a notice of intention or a proposal has been filed in respect of an insolvent person, no person may terminate or amend any agreement, including a security agreement, with the insolvent person, or…