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Bankruptcy and Insolvency General Rules (C.R.C., c. 368)

Regulations are current to 2024-03-06 and last amended on 2011-03-25. Previous Versions

Interim Receiver (continued)

 [Repealed, SOR/98-240, s. 1]

Bankruptcy Orders

  •  (1) The applicant shall, as soon as possible and not later than two days after a bankruptcy order is made under subsection 43(6) of the Act, serve, deliver personally or send by courier, facsimile or electronic transmission a copy of the order to the trustee appointed under subsection 43(9) of the Act.

  • (2) Within two days after receiving the copy of the bankruptcy order, the trustee shall serve a copy of the order on the bankrupt and send a copy to the Division Office.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 18
  •  (1) An application to revoke a bankruptcy order or to stay proceedings may be made to the court if a notice of the application, together with copies of supporting affidavits, is served on the applicant and the trustee and is filed with the Division Office.

  • (2) Pending the hearing of the application mentioned in subsection (1), the court may make an interim order staying the whole or any part of the proceedings.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 19

 [Repealed, SOR/98-240, s. 1]

Assignments

 An official receiver shall, on appointing a trustee pursuant to subsection 49(4) of the Act, prepare a certificate of appointment, in prescribed form, and send a copy of it to the trustee.

  • SOR/98-240, s. 1

 On receiving from a bankrupt a statement of affairs described in paragraph 158(d) of the Act, a trustee shall file a copy of it at the office of the official receiver.

  • SOR/98-240, s. 1

 [Repealed, SOR/98-240, s. 1]

 The court may order the trustee to file with the court, before or immediately after the first meeting of the creditors, a copy of the following documents:

  • (a) the assignment that was filed with the official receiver;

  • (b) the statement of affairs that was filed with the official receiver; and

  • (c) the minutes of the first meeting of creditors.

  • SOR/92-579, s. 20
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 20(E)
  • SOR/2009-218, s. 12

 [Repealed, SOR/98-240, s. 1]

  •  (1) An application to annul an assignment may be made to the court if a notice of the application, together with copies of supporting affidavits, is served on the trustee, on the Division Office, and also on the bankrupt if the application is made by a person other than the bankrupt.

  • (2) Pending the hearing of the application mentioned in subsection (1), the court may make an interim order staying the whole or any part of the proceedings.

  • SOR/98-240, s. 1

 [Repealed, SOR/98-240, s. 1]

Proposals

 If a trustee has received a proposal made under subsection 50(1) of the Act, the trustee shall file a copy of it with the official receiver.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
  •  (1) As soon as the following documents are filed with the official receiver, the trustee shall file a copy of them with the court:

    • (a) the proposal;

    • (b) the cash-flow statement, the report on the reasonableness of the cash-flow statement and the report containing the representations by the insolvent person, required by paragraphs 50(6)(a), (b) and (c), respectively, of the Act;

    • (c) the material adverse change report required by subparagraph 50(10)(a)(i) of the Act;

    • (d) the report on the state of the insolvent person’s business and financial affairs required by paragraph 50(10)(b) of the Act;

    • (e) the notice of intention referred to in subsection 50.4(1) of the Act;

    • (f) the cash-flow statement required by paragraph 50.4(2)(a) of the Act;

    • (g) the report on the reasonableness of the cash-flow statement, required by paragraph 50.4(2)(b) of the Act;

    • (h) the report containing the representations by the insolvent person required by paragraph 50.4(2)(c) of the Act;

    • (i) the material adverse change report required by subparagraph 50.4(7)(b)(i) of the Act; and

    • (j) the notice of the meeting of creditors required by paragraph 51(1)(a) of the Act.

  • (2) For the purposes of paragraphs 50(6)(c) and 50.4(2)(c) of the Act, the representations are as follows:

    The hypothetical assumptions are reasonable and consistent with the purpose of the projection described in Note blank line, and the probable assumptions are suitably supported and consistent with the plans of the insolvent person and provide a reasonable basis for the projection. All such assumptions are disclosed in Notes blank line

    Since the projection is based on assumptions regarding future events, actual results will vary from the information presented, and the variations may be material.

    The projection has been prepared solely for the purpose described in Note blank line, using a set of probable and hypothetical assumptions set out in Notes blank line Consequently, readers are cautioned that it may not be appropriate for other purposes.

  • SOR/98-240, s. 1

 For the purposes of section 53 of the Act, the manner in which a creditor who has proved a claim may indicate to the trustee assent to or dissent from the proposal is by personal delivery, by mail, by facsimile or by electronic transmission.

  • SOR/92-579, s. 23
  • SOR/98-240, s. 1

 When approving a proposal, the court may correct any clerical error or omission in it, if the correction does not constitute an alteration in substance.

  • SOR/98-240, s. 1

 For the purposes of section 62.1 of the Act,

  • (a) the time for an insolvent person to remedy a default in the performance of any provision in a proposal is 30 days after the day the default was made; and

  • (b) the time for a trustee to inform the creditors and the official receiver of the situation is 30 days after the expiration of the 30 day period described in paragraph (a).

  • SOR/98-240, s. 1

 If an official receiver, under paragraph 57(b.1) or 61(2)(b.1) or subsection 63(6) of the Act, issues a certificate of assignment, the official receiver shall immediately

  • (a) send a copy of it to the trustee acting with respect to the proposal; and

  • (b) file it with the court.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 21(E)
  • SOR/2009-218, s. 13

 The notice to disclaim or resiliate an agreement that is given by the debtor under subsection 65.11(1) of the Act must be served or be sent by registered mail, by courier or, if the recipient agrees, by electronic transmission.

  • SOR/2009-218, s. 14

 The notice to disclaim or resiliate a lease that is given by an insolvent person under subsection 65.2(1) of the Act must be served or be sent by registered mail, by courier or, if the recipient agrees, by electronic transmission.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 22(E)
  • SOR/2009-218, s. 14

Consumer Proposals

 For the purposes of paragraph 66.13(1)(b) of the Act, the information that the consumer debtor must provide the administrator is

  • (a) information respecting the consumer debtor’s financial situation, for the purpose of preparing the consumer proposal; and

  • (b) an explanation of the causes of the consumer debtor’s insolvency.

  • SOR/92-579, s. 24
  • SOR/98-240, s. 1

 [Repealed, SOR/98-240, s. 1]

 For the purposes of subsection 66.17(1) of the Act, the manner in which a creditor who has proved a claim may indicate to the administrator assent to or dissent from the consumer proposal is in person, by personal delivery, by agent or mandatary, by proxy, by mail, by facsimile or by electronic transmission.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 23(E)

 The administrator of a consumer proposal shall apply for taxation of accounts and for discharge by sending to the Division Office

  • (a) the administrator’s final statement of receipts and disbursements, in prescribed form;

  • (b) a dividend sheet, showing the dividends paid or to be paid to the creditors under the consumer proposal; and

  • (c) if inspectors have been appointed by the creditors, a copy of the minutes of the meeting of inspectors at which the inspectors approved or refused to approve the administrator’s final statement of receipts and disbursements and the dividend sheet.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)

 The Superintendent shall examine all documents sent pursuant to section 98 and shall issue a letter of comment to the administrator, stating whether the Superintendent is requesting from the registrar the taxation of the administrator’s accounts.

  • SOR/98-240, s. 1
  •  (1) If the Superintendent’s letter of comment states that the Superintendent is not requesting the taxation of the administrator’s accounts, the administrator shall, within 30 days after receipt of the letter of comment, send to each creditor who has proved a claim a notice of taxation of the administrator’s accounts and discharge of the administrator, in prescribed form, attaching

    • (a) a copy of the administrator’s final statement of receipts and disbursements;

    • (b) a copy of the dividend sheet, showing the dividends paid or to be paid to the creditors under the consumer proposal; and

    • (c) the final dividend that is owed to the creditor, if the administrator is satisfied that no creditor will object to the taxation of the administrator’s accounts and the discharge of the administrator.

  • (2) A creditor may, within 30 days after the day on which the notice referred to in subsection (1) is sent, object to the taxation of the administrator’s accounts and the discharge of the administrator by

    • (a) serving a notice of objection on the administrator or sending a notice of objection to the administrator by registered mail or courier;

    • (b) filing a copy of the notice of objection with the registrar, along with any applicable fee provided by the tariff; and

    • (c) sending a copy of the notice of objection to the Division Office.

  • SOR/78-389, s. 4
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
  •  (1) If the administrator receives no notice of objection within the time limit set out in subsection 100(2), the administrator shall, within three months after the day on which the notice referred to in subsection 100(1) is sent,

    • (a) if the administrator has not already done so, send each creditor the final dividend that is owed to them;

    • (b) close the bank account used in administering the consumer proposal, if that account is not a consolidated account, or, if the account is a consolidated account, ensure that all funds governed by the consumer proposal have been withdrawn from it;

    • (c) remit any unclaimed dividends and undistributed funds to the Superintendent; and

    • (d) send to the Division Office a certificate of compliance and deemed discharge, in prescribed form.

  • (2) The administrator is deemed to be discharged on meeting the requirements of subsection (1).

  • (3) If the administrator receives a notice of objection within the time limit set out in subsection 100(2), the administrator shall

    • (a) [Repealed, SOR/2009-218, s. 15]

    • (b) obtain a hearing date from the registrar; and

    • (c) within 30 days after the day on which the notice of objection is received, send the objecting creditor a notice of hearing, which notice must be sent at least 30 days before the date of the hearing and must be in prescribed form.

  • SOR/78-389, s. 5
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
  • SOR/2009-218, s. 15
  •  (1) If the Superintendent issues a letter of comment pursuant to section 99 requesting the taxation of an administrator’s accounts, the administrator shall, after obtaining a hearing date from the registrar and within 30 days after the day of receipt of the letter of comment, send to each creditor who has proved a claim and to the Division Office

    • (a) a notice of hearing for the taxation of the administrator’s accounts and the discharge of the administrator, in prescribed form, which notice must be sent at least 30 days before the date of the hearing;

    • (b) a copy of the administrator’s final statement of receipts and disbursements; and

    • (c) a copy of the dividend sheet, showing the dividends paid or to be paid to the creditors under the consumer proposal.

  • (2) A creditor may object to the taxation of the administrator’s accounts and discharge of the administrator by

    • (a) serving a notice of objection on the administrator or sending a notice of objection to the administrator by registered mail or courier, which notice of objection must be received by the administrator before the start of the hearing;

    • (b) filing a copy of the notice of objection with the registrar, along with any applicable fee provided by the tariff; and

    • (c) sending a copy of the notice of objection to the Division Office.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
  •  (1) At the time of the hearing, the registrar shall consider the creditors’ objections and the letter of comment issued by the Superintendent, and shall tax the administrator’s accounts accordingly.

  • (2) If the registrar taxes an administrator’s accounts as submitted, the administrator shall, within two months after the date of the taxation order,

    • (a) send each creditor the final dividend that is owed to them;

    • (b) close the bank account used in administering the consumer proposal, if that account is not a consolidated account, or, if the account is a consolidated account, ensure that all funds governed by the consumer proposal have been withdrawn from it;

    • (c) remit any unclaimed dividends and undistributed funds to the Superintendent; and

    • (d) send to the Division Office a certificate of compliance and deemed discharge, in prescribed form.

  • (3) The administrator is deemed to be discharged on meeting the requirements of subsection (2).

  • (4) If the registrar taxes an administrator’s accounts otherwise than as submitted, the administrator shall

    • (a) adjust the administrator’s fee as taxed and, if that fee was reduced by the taxation, reimburse the difference to the bank account used in administering the consumer proposal; and

    • (b) within two months after the date of the taxation order,

      • (i) send each creditor the final dividend that is owed to them, in accordance with the taxation order,

      • (ii) close the bank account used in administering the consumer proposal, if that account is not a consolidated account, or, if the account is a consolidated account, ensure that all funds governed by the consumer proposal have been withdrawn from it,

      • (iii) remit any unclaimed dividends and undistributed funds to the Superintendent,

      • (iv) send to the Division Office and to each creditor a revised final statement of receipts and disbursements, a revised dividend sheet and a copy of the taxation order, and

      • (v) send to the Division Office and to the registrar a certificate of compliance and deemed discharge, in prescribed form.

  • (5) The administrator is deemed to be discharged on meeting the requirements of subsection (4).

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
 

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