As of right now, there are four specific legislations put in place that govern bankruptcy law. The concept behind personal bankruptcy is simple: you assign all non-exempt assets you own and make payments to the Licensed Insolvency Trustee for the benefit of your creditors, in exchange for which you are released from your debts. Bankruptcy is a legal process by which you may be discharged from most of your debts.Its purpose is to permit an honest, but unfortunate debtor to obtain a discharge from most debts, subject to reasonable conditions. Canadian bankruptcy laws also set out the requirements that you must fulfill during bankruptcy before getting out of bankruptcy. Federal Law There are two major pieces of legislation that govern bankruptcies in Canada – the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act. At the end of the process, the bankrupt is released from the obligation to repay the debts they had when the bankruptcy was filed (with some exceptions). The Canadian bankruptcy and insolvency regime is divided between the federal and provincial levels of government, in accordance with the division of powers set out in Canada's Constitution. As a result, there is no recent case law that deals with the issue of whether insolvent municipalities can rely on existing bankruptcy legislation. The bankruptcy concludes once the trustee has distributed all the proceeds realised from the sale of the property and assets of the debtor to the debtor's creditors and the trustee has been discharged by the court. These are: The Canadian Bankruptcy and Insolvency Act (BIA); Limitations Act; Ontario Execution Act; All the bankruptcy laws, though, work to preserve your rights and the rights of your creditors, or the people you borrowed money from. Last week I wrote about amendments to Canadian insolvency law for intellectual property rights in my Brandon’s Blog INSOLVENCY LAW CANADA AMENDMENTS FOR INTELLECTUAL PROPERTY RIGHTS In addition to the intellectual property rights amendments, other amendments affecting how bankruptcies work in Canada. 100 Years of Canadian Bankruptcy and Insolvency Law. Marginal note: Secured creditor may amend 132 (1) 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 that the valuation and proof were made in good faith on a mistaken estimate or that the security has diminished … How Does Bankruptcy Affect Alimony & Maintenance or Support. Federal laws of canada. The Canadian bankruptcy laws and rules exist to help honest but unfortunate people obtain relief from their creditors, and to allow them to make a “financial fresh start”. The Faculty of Law at Western University will host a virtual conference, May 14-15, 2021, to mark the 100th anniversary of the Bankruptcy Act 1919 – the forerunner of Canada’s modernized bankruptcy and insolvency regime – and to formulate reform proposals for the future.. Canadian bankruptcy law is governed by federal legislation, the Bankruptcy & Insolvency Act, and filing bankruptcy is a legal process.. Under Canadian law, a foreign non-main proceeding is any foreign proceeding other than a foreign main proceeding. The conference will provide an opportunity to … Bankruptcy is a legal process designed to relieve honest but unfortunate debtors of their debts. Canadian bankruptcies laws. Bankruptcy does not discharge outstanding alimony or child support payments in Canada pursuant to section 178 (1)(b) the Bankruptcy & Insolvency Act. The spouse owed back support payments can make a claim in the bankruptcy and receive their share of any ‘dividend’ paid from the estate. 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