Bankruptcy and Insolvency Act
Sections and provisions with full text and the judgments that cite each one.
Section 107 — How creditors shall vote
Every class of creditors may express its views and wishes separately from every other class and the effect to be given to those views and wishes shall, in case of any dispute and subject to this Act,…
Section 108 — Chair may admit or reject proof
The chair of any meeting of creditors has power to admit or reject a proof of claim for the purpose of voting but his decision is subject to appeal to the court. Notwithstanding anything in this Act,…
Section 109 — Right of creditor to vote
A person is not entitled to vote as a creditor at any meeting of creditors unless the person has duly proved a claim provable in bankruptcy and the proof of claim has been duly filed with the trustee…
Section 110 — Claims acquired after date of bankruptcy
No person is entitled to vote on a claim acquired after the date of bankruptcy in respect of a debtor unless the entire claim is acquired. Subsection (1) does not apply to persons acquiring notes,…
Section 111 — Creditor secured by bill or note
A creditor shall not vote in respect of any claim on or secured by a current bill of exchange or promissory note held by him, unless he is willing to treat the liability to him thereon of every…
Section 112 — Voting by secured creditor
For the purpose of voting, a secured creditor shall, unless he surrenders his security, state in his proof the particulars of his security, the date when it was given and the value at which he…
Section 113 — Trustee may vote
If the trustee is a proxyholder for a creditor, the trustee may vote as a creditor at any meeting of creditors. The vote of the trustee — or of the partner, clerk or legal counsel of the trustee, or…
Section 114 — Evidence of proceedings at meetings of creditors
A minute of proceedings at a meeting of creditors under this Act signed at the same or the next ensuing meeting by a person describing himself as or appearing to be chair of the meeting at which the…
Section 115 — Votes
Subject to this Act, all questions at meetings of creditors shall be decided by resolution carried by the majority of votes, and for that purpose the votes of a creditor shall be calculated by…
Section 115.1 — Court order — interlocutory or permanent
In an application to revoke or vary a decision that affects or could affect the outcome of a vote, the court may make any order that it considers appropriate, including one that suspends the effect…
Section 116 — Resolution respecting inspectors
At the first or a subsequent meeting of creditors, the creditors shall, by resolution, appoint up to five inspectors of the estate of the bankrupt or agree not to appoint any inspectors. No person is…
Section 117 — Meetings
The trustee may call a meeting of inspectors when he deems it advisable and he shall do so when requested in writing by a majority of the inspectors. An inspector may, if all the other inspectors…
Section 118 — Obligation of trustee when inspectors fail to exercise their powers
If the inspectors fail to exercise the powers conferred on them, the trustee shall call a meeting of the creditors for the purpose of substituting other inspectors and for the purpose of taking any…
Section 119 — Creditors may override directions of inspectors
Subject to this Act, the trustee shall in the administration of the property of the bankrupt and in the distribution thereof among his creditors have regard to any directions that may be given by…
Section 120 — Inspector may not acquire property
No inspector is, directly or indirectly, capable of purchasing or acquiring for himself or for another any of the property of the estate for which he is an inspector, except with the prior approval…
Section 121 — Claims provable
All debts and liabilities, present or future, to which the bankrupt is subject on the day on which the bankrupt becomes bankrupt or to which the bankrupt may become subject before the bankrupt’s…
Section 122 — Claims provable in bankruptcy following proposal
The claims of creditors under a proposal are, in the event of the debtor subsequently becoming bankrupt, provable in the bankruptcy for the full amount of the claims less any dividends paid thereon…
Section 123 — Proof in respect of distinct contracts
Where a bankrupt was, at the date of the bankruptcy, liable in respect of distinct contracts as a member of two or more distinct firms, or as a sole contractor and also as member of a firm, the…
Section 124 — Creditors shall prove claims
Every creditor shall prove his claim, and a creditor who does not prove his claim is not entitled to share in any distribution that may be made. A claim shall be proved by delivering to the trustee a…
Section 125 — Penalty for filing false claim
Where a creditor or other person in any proceedings under this Act files with the trustee a proof of claim containing any wilfully false statement or wilful misrepresentation, the court may, in…
Section 126 — Who may examine proofs
Every creditor who has filed a proof of claim is entitled to see and examine the proofs of other creditors. Proofs of claims for wages of workers and others employed by the bankrupt may be made in…
Section 127 — Proof by secured creditor
Where a secured creditor realizes his security, he may prove the balance due to him after deducting the net amount realized. Where a secured creditor surrenders his security to the trustee for the…
Section 128 — Proof may be requested
Where the trustee has knowledge of property that may be subject to a security, the trustee may, by serving notice in the prescribed form and manner, require any person to file, in the prescribed form…
Section 129 — May order security to be sold
Where the trustee is dissatisfied with the value at which a security is assessed, the trustee may require that the property the security comprises be offered for sale at such time and on such terms…
Section 130 — Creditor may require trustee to elect to exercise power
Notwithstanding subsection 128(3) and section 129, the creditor may, by notice in writing, require the trustee to elect whether he will exercise the power of redeeming the security or requiring it to…
Section 131 — Amended valuation by creditor
Where a creditor after having valued his security subsequently realizes it, or it is realized under section 129, the net amount realized shall be substituted for the amount of any valuation…
Section 132 — Secured creditor may amend
Where the trustee has not elected to acquire the security as provided in this Act, a creditor may at any time amend the valuation and proof on showing to the satisfaction of the trustee or the court…
Section 133 — Exclusion for non-compliance
Where a secured creditor does not comply with sections 127 to 132, he shall be excluded from any dividend.
Section 134 — No creditor to receive more than 100 cents in dollar
Subject to section 130, a creditor shall in no case receive more than one hundred cents on the dollar and interest as provided by this Act.
Section 135 — Trustee shall examine proof
The trustee shall examine every proof of claim or proof of security and the grounds therefor and may require further evidence in support of the claim or security. The trustee shall determine whether…
Section 136 — Priority of claims
Subject to the rights of secured creditors, the proceeds realized from the property of a bankrupt shall be applied in priority of payment as follows: in the case of a deceased bankrupt, the…
Section 137 — Postponement of claims — creditor not at arm’s length
A creditor who, at any time before the bankruptcy of a debtor, entered into a transaction with the debtor and who was not at arm’s length with the debtor at that time is not entitled to claim a…
Section 138
[Repealed, 2007, c. 36, s. 48]
Section 139 — Postponement of claims of silent partners
Where a lender advances money to a borrower engaged or about to engage in trade or business under a contract with the borrower that the lender shall receive a rate of interest varying with the…
Section 140 — Postponement of wage claims of officers and directors
Where a corporation becomes bankrupt, no officer or director thereof is entitled to have his claim preferred as provided by section 136 in respect of wages, salary, commission or compensation for…
Section 140.1 — Postponement of equity claims
A creditor is not entitled to a dividend in respect of an equity claim until all claims that are not equity claims have been satisfied.
Section 141 — Claims generally payable rateably
Subject to this Act, all claims proved in a bankruptcy shall be paid rateably.
Section 142 — Partners and separate properties
Where partners become bankrupt, their joint property shall be applicable in the first instance in payment of their joint debts, and the separate property of each partner shall be applicable in the…
Section 143 — Interest from date of bankruptcy
Where there is a surplus after payment of the claims as provided in sections 136 to 142, it shall be applied in payment of interest from the date of the bankruptcy at the rate of five per cent per…
Section 144 — Right of bankrupt to surplus
The bankrupt, or the legal personal representative or heirs of a deceased bankrupt, is entitled to any surplus remaining after payment in full of the bankrupt’s creditors with interest as provided by…
Section 145 — Proceeds of liability insurance policy on motor vehicles
Nothing in this Act affects the right afforded by provincial statute of any person who has a claim against the bankrupt for damages on account of injury to or death of any person, or injury to…
Section 146 — Application of provincial law to lessors’ rights
Subject to priority of ranking as provided by section 136 and subject to subsection 73(4) and section 84.1, the rights of lessors are to be determined according to the law of the province in which…
Section 147 — Levy payable out of dividends for supervision
For the purpose of defraying the expenses of the supervision by the Superintendent, there shall be payable to the Superintendent for deposit with the Receiver General a levy on all payments, except…
Section 148 — Trustee to pay dividends as required
Subject to the retention of such sums as may be necessary for the costs of administration or otherwise, the trustee shall, from time to time as required by the inspectors, declare and distribute…
Section 149 — Notice that final dividend will be made
The trustee may, after the first meeting of the creditors, send a notice, in the prescribed manner, to every person with a claim of which the trustee has notice or knowledge but whose claim has not…
Section 150 — Right of creditor who has not proved claim before declaration of dividend
A creditor who has not proved his claim before the declaration of any dividend is entitled on proof of his claim to be paid, out of any money for the time being in the hands of the trustee, any…
Section 151 — Final dividend and division of estate
When the trustee has realized all the property of the bankrupt or all thereof that can, in the joint opinion of himself and of the inspectors, be realized without needlessly protracting the…
Section 152 — Statement of receipts and disbursements
The trustee’s final statement of receipts and disbursements shall contain a complete account of all moneys received by the trustee out of the bankrupt’s property or otherwise, the amount of interest…
Section 153 — Dividends on joint and separate properties
Where joint and separate properties are being administered, the dividends may be declared together, and the expenses thereof shall be apportioned by the trustee.
Section 154 — Unclaimed dividends and undistributed funds
Before proceeding to discharge, the trustee shall forward to the Superintendent for deposit, according to the directives of the Superintendent, with the Receiver General the unclaimed dividends and…