Fundamentals of the Bankruptcy and Insolvency Act
Adopted in 1869, the Bankruptcy and Insolvency Act is a law of federal jurisdiction. Regulated and supervised by the Office of the Superintendent of Bankruptcy (BSF), the application of the Act is monitored fair and equitable.
The Bankruptcy and Insolvency Act is designed to protect both debtors and creditors. creditorsduring a personal bankruptcy so that each party can take full advantage of your rights.
In this article, discover the fundamentals of the Bankruptcy and Insolvency Act.
The main players
Only the Licensed insolvency trustees (SAI) are authorized to administer bankruptcy files under the Bankruptcy and Insolvency Act.
To be authorized to operate as an SAI, you must hold a license issued by the Office of the Superintendent of Bankruptcy (OSB) and pass numerous exams.
In addition to personal bankruptcy, IADs also offer other solutions to regulate your financial situation, including debt consolidation and the consumer proposal.
The IAS will therefore enforcement of debtors' and creditors' rights in compliance with the Bankruptcy and Insolvency Act, while playing an active intermediary role between the two parties. The IAS also acts as advisor and court officer in cases of personal bankruptcy.
Eligibility requirements
Not everyone is allowed to declare bankruptcy. The Bankruptcy and Insolvency Act imposes compliance with two conditions to assert its right to file for bankruptcy:
- You must have a minimum of 1000 $ of debt
- You must be insolventof not being able to fulfill its obligations. financial obligations
If you are no longer able to pay your debts when they fall due, you are considered a insolvent person.
Debtors who declare bankruptcy are referred to as "almost.
Mandatory steps
When a debtor decides to file for bankruptcy, the Bankruptcy and Insolvency Act imposes the following steps get out of debtwhile fulfilling its obligations.
With SAI, the debtor will carry out the next steps :
- A meeting with a licensed insolvency trustee
- Filing with the Office of the Superintendent of Bankruptcy
- Sending a notice to creditors and a meeting between all parties (optional)
- Monthly payments by the debtor to the SAI according to his financial situation
- Participation in two mandatory consultation sessions with the SAI
- Discharge of the bankrupt (if he has discharged all his duties)
- Payment of IAS fees and creditor dividends
In a personal bankruptcy, the Bankruptcy and Insolvency Act states that the debtor is not discharged from his debts called "non-liberableThese include fines, parking tickets, alimony debts, student loans, debts resulting from fraud, and so on.
Would you like to learn more about the Bankruptcy and Insolvency Act or contact a Licensed Insolvency Trustee? Contact N. Séguin today!
