Coquitlam's Hoy Creek Housing Co-operative has been in financial difficulty for years. Consisting of 97 apartments and 60 abandoned townhouses, the corporation owes the Canadian Mortgage and Housing Corporation (CMHC) over $4.2 million, including mortgage arrears of $300,000.
Secured creditors generally operate outside of bankruptcy proceedings. Not only may they continue to realize upon their security while unsecured creditors seek payment of their debts in bankruptcy, but secured creditors can actually benefit from a debtor's bankruptcy in at least three different ways.
A debtor owes money and is ordered to attend a judgment debtor examination. The debtor fails to show up. The creditor subsequently seeks an order requiring the debtor to attend an examination and to produce a number of relevant documents. On the day before the scheduled examination, the debtor files for bankruptcy and then shows up at the examination, taking the position that the order is automatically stayed under the provisions of the Bankruptcy and Insolvency Act (BIA). Can the debtor be held in contempt of the order?
With the dismissal of a recent appeal case brought before the British Columbia Court of Appeal, strata councils in Vancouver have strengthened their right to restrict condo rentals.