The Canadian Bankruptcy and Insolvency Act is "An Act Respecting Bankruptcy and Insolvency" that sets out the law as regards bankruptcy in Canada under federal law, and is applicable to both businesses and individuals. The legislation includes the duties and powers of the Office of the Superintendent of Bankruptcy, a federal agency responsible for ensuring that bankruptcies are administered in a fair and orderly manner. The Bankruptcy and Insolvency Act is a federal statue that is uniformly applicable throughout Canada. Its purpose is not only to perserve as many of the debtor's assets as possible for the benefit for the creditors, but also to rehabilitate such debtors by forgiving the unpaid debt, thus removing an insurmountable burden and restoring then as productive members of society. Significant amendments have recently been made to introduce a further objective to help viable businesses survive restructuring and to facilitate consumers in making arrangements with creditors and thus avoid actual bankruptcy. Other important amendments are anticipated. It should be noted that the Bankruptcy and Insolvency Act does not appply to banks, insurance, companies, trust companies, loan companies, and railways. It should also be noted that farmers and fishers cannot be forced into bankruptcy, but they can make a voluntary assignment.
See also
External links
- "Bankruptcy and Insolvency Act" the full text of the act on the Canadian Department of Justice website
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