Canadian bankruptcy laws
The Bankruptcy and Insolvency Act ("BIA") was established by the Government of Canada to help you get a fresh start.
The objectives of Canadian bankruptcy laws can be summarized as follows:
- To permit an honest, but unfortunate debtor to obtain a discharge of his debts and to make "Fresh Start".
- To permit a bankrupt to receive a complete discharge of all debts in order that he or she may be able to integrate into the business life of the country as a useful citizen free from the crushing burden of debt.
- To provide for the financial rehabilitation of insolvent persons.
- To provide for the orderly and fair distribution of the property of a bankrupt (that is not exempt from seizure).
- To allow for an investigation of the bankrupt's affairs
- To permit the setting aside of fraudulent transactions and preferences.
The Bankruptcy and Insolvency Act is available on the federal government website. Each province also has specific laws regarding the treatment of personal property in a bankruptcy. See the list of exemptions (assets you can keep) in your province.
On September 18, 2009, changes to Canada's bankruptcy laws came into force. These changes are designed to modernize the insolvency system, increase fairness and reduce abuse of the system, and encourage restructuring as an alternative to bankruptcy.
For more detailed information Contact Deloitte to arrange for a free consultation with a licensed bankruptcy trustee to discuss your options and learn how the law will apply to your situation.