In order for a creditor to participate in a dividend in a bankruptcy, the creditor must file a proof of claim and have that proof of claim accepted by the trustee in bankruptcy.
Late Filing of Proof of Claim in Bankruptcy
Supreme Court of Canada finds bankrupt energy company cannot ignore environmental obligations
In a long-awaited decision, the Supreme Court of Canada has overturned the Alberta Court of Appeal, and determined that a bankrupt company does not have carte blanche to ignore its environmental obligations.
Fonts prove forgery
Mark Twain said, "If you tell the truth you don't have to remember anything." That wisdom was driven home in the recent Ontario case McGoey (re), in which a bankrupt tried to prove that two properties registered in his name were actually held by him in trust for someone else, and therefore were not available to his creditors. He produced two trust deeds showing this.
Landlords Must Take Issue with Assignment of Lease Before Court Approval
A recent case out of the Ontario Supreme Court, Re Aeropostale Canada Corp. (Notice of Intention) 2018 ONSC 1468, examined the question of whether a court ordered assignment of a commercial lease pursuant to s. 84.1 of the Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3) (the "BIA") would include all terms of the lease, including those limited to the original lessee under the lease who was now bankrupt.
Only Creditors have Standing in Bankruptcy Proceedings
The recent decision in Re Cooke, 2018 SKQB 329, is a reminder that it is only creditors of the bankrupt who have standing in bankruptcy proceedings.
The Bankruptcy and Insolvency Act ("BIA") defines "creditor" as "a person having a claim provable as a claim under this Act".
Federal funds for laid-off workers increased
The federal Wage Earner Protection Program Act (WEPPA) provides funds for employees who go unpaid as a result of their employer's bankruptcy. or receivership This program is administered with the help of the trustee in bankruptcy or receiver (as the case may be).
Creditor's inattention to proposal terms leads to release of joint debtor
When a debtor makes a proposal under the Bankruptcy and Insolvency Act ("BIA"), the terms of that proposal must be put to creditors for a vote. If accepted, the proposal will then be submitted to the court for approval and then performed by the debtor; if rejected, the debtor will be deemed bankrupt.
Canadian debt at pre-recession levels
By some measures, Canadian households show higher debt levels than the US peak which preceded the Great Recession.
Bankrupt faces resurrected mortgage debts following discharge
The bankruptcy process is generally considered a means for a person facing an overwhelming debt burden to obtain a "fresh start" through the release of their debts upon discharge from bankruptcy. The Bankruptcy and Insolvency Act prescribes a number of exceptions to that principle, and a recent decision out of Alberta serves as a stark reminder that a bankrupt's conduct can also cause a debt to survive bankruptcy, or even be revived.
Failure to pay judgment results in contempt order
In a recent BC decision, Fitzgerald Living Trust v. Mountainstar Gold, Inc., a judgment against the corporate defendant resulted in jail time for the principal behind the defendant.
