We understand that things don’t always go according to plan. If you find yourself or your business in a situation where you are considering bankruptcy or are facing foreclosure on one or more of your assets, allow our experienced legal team to counsel you and guide you through the Bankruptcy and Insolvency Process.
What is the Bankruptcy and Insolvency Act?
In 1985, the federal government established The Bankruptcy and Insolvency Act (BIA) to help guide businesses and citizens in times of financial trouble. Often referred to as the “bankruptcy act,” it was created to protect the rights of the individual, the business, and its creditors. It helps to advise trustees and the court of their responsibilities, powers, and duties.
The Act details how different financial options work legally, and outlines the jobs that the Superintendent of Bankruptcy, the representatives of the Superintendent of Bankruptcy (official receivers), the court, trustees, creditors, and the individual, have.
In addition to the Bankruptcy and Insolvency Act, each province has legislation regulating the bankruptcy process within their borders. If there is ever a difference between the federal and provincial laws, the federal laws take precedence.
What is the Difference between Bankruptcy, Insolvency, and Foreclosure?
- Bankruptcy: The legal process for liquidating the property and assets of a debtor to pay off debts.
- Insolvency: The situation where a person or company no longer has money to pay off debts and obligations.
- Foreclosure: The action of taking possession of a mortgaged property when the mortgagor fails to keep up their mortgage payments.