Canadian Bankruptcy Laws
Legislation, Rules and Regulations
Canada’s insolvency system is unique. It is easy to get confused with all of the media coming from the USA, but Canada’s bankruptcy laws and rules are not the same. We have legislation at both the Federal and Provincial levels that outline processes for bankruptcy and other regulated debt settlement options including consumer proposals. Here is a breakdown of the Canadian bankruptcy and insolvency system including the legislation, rules and regulations.
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The Bankruptcy and Insolvency Act is Federal legislation that outlines the process for filing bankrupties and consumer proposals in Canada. It identifies the Office of the Superintendent of Bankruptcy as the regulatory body and Licensed Insolvency Trustees as the only professionals able to prepare and administer bankruptcy filings.
The Civil Enforecement Act is Provincial legislation in Alberta that determines how debts can be enforced and collected by creditors. It addresses wage garnishment, debt collection agencies and the seizure of assets for unpaid debts. It also identifies which assets are protected from seizure and included with the Alberta Bankruptcy Exemptions.
As an accompanyment to the Civil Enforcement Act, the Civil Enforcement Regulations provide further details surrounding the laws and rules of debt enforcement. This is where we find the limits of each exempt asset. For example, in Alberta, you are allowed to keep up to $40,000 of equity in your primary residence after filing for bankruptcy.
Canadian Bankruptcy Laws Help You to Make a “Fresh Start”
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”. Canadian bankruptcy laws also set out the requirements that you must fulfill during bankruptcy before getting out of bankruptcy.
Canadian Bankruptcy Laws Are Made To Protect You and Your Creditors
The laws are also in place to allow for the distribution of property that is not exempt, and for financial rehabilitation of insolvent persons. These rules are made not only to protect the debtor but also to ensure that your creditors are dealt with fairly. Click here for more information on Exempt and Non-Exempt properties.
Canadian Bankruptcy Laws Are Set in Place to Help You Obtain That Financial Freedom Once Again
A consumer proposal or bankruptcy can remove the crushing burden of debt and once again allow you to integrate themselves into the business life of Alberta as a contributing citizen. We want to help you obtain financial freedom once again.
For more information or to schedule a consultation please call our offices at (403) 265-4357