Resources for Creditors
Frequently Asked Questions
On this page:
- How do I find out if a person or a business has declared bankruptcy?
- I paid a company or an individual for services and have not heard back from them. Have they filed for bankruptcy?
- My employer just went bankrupt. What happens to my wages and my vacation pay? What am I entitled to?
- How do I stop a bankrupt from being discharged?
- Why was I not notified of the bankruptcy (or consumer proposal)?
- The Canada Revenue Agency believes, incorrectly, that I was paid wages owed to me by my bankrupt employer. What should I do?
- What is a dividend? How and when are dividends distributed?
- I own assets that are located on the premises of a company that has declared bankruptcy and have been unable to retrieve them. What should I do?
- I made an advance payment to a company that has declared bankruptcy. What can I do?
- How do I complete a Proof of Claim?
- What is the role of an inspector in the bankruptcy process?
- What happens at the first meeting of creditors?
- How do I find out if a person or a business has declared bankruptcy?
The easiest way to find out if a person or a business has declared bankruptcy is to do an online search of bankruptcy and insolvency records. The records contain basic debtor information for all bankruptcies and proposals registered in Canada since 1978.
There is a minimum charge of $8 per search. You can pay by credit card (VISA or MasterCard) or, if you plan to use the service regularly, you can open an account with the Office of the Superintendent of Bankruptcy.
I paid a company or an individual for services and have not heard back from them. Have they filed for bankruptcy?
To find out if a company or an individual has filed for bankruptcy, you can do an online search of bankruptcy and insolvency records. (There is a minimum charge of $8 per search.)
It is also possible that the company simply folded its business. If that is the case, you could contact your provincial and/or municipal office of consumer affairs.
My employer just went bankrupt. What happens to my wages and my vacation pay? What am I entitled to?
Under the Wage Earner Protection Program, an employee who can work in Canada legally has certain protections related to the payment of wages and vacation pay in the event his or her employer declares bankruptcy. To find out what you are entitled to, contact the trustee who is administering the bankruptcy.
How do I stop a bankrupt from being discharged?
To oppose a discharge, you must send a letter to the trustee, the bankrupt and the Office of the Superintendent of Bankruptcy stating your intention to oppose the discharge as well as the reasons why. The trustee will set up a Court hearing and will inform you of the date of the hearing.
Why was I not notified of the bankruptcy (or consumer proposal)?
Perhaps it was a simple oversight by the debtor, or the trustee is not aware that the debtor owes you money. Contact the trustee to find out what information you need to provide to confirm your status as a creditor.
If you don't know who the trustee is, you can search for the debtor in the bankruptcy and insolvency records. These records include information about the trustee. (There is a minimum charge of $8 per search.)
- The Canada Revenue Agency believes, incorrectly, that I was paid wages owed to me by my bankrupt employer. What should I do?
It is possible that the trustee was unable to send payment because of an incorrect address or perhaps the cheque has gone astray. Contact the trustee to verify that he or she is aware of your status as a creditor and has your correct address.
What is a dividend? How and when are dividends distributed?
Dividends are amounts payable to individuals and businesses owed money by the debtor that have confirmed their status as creditors. To be eligible to receive a dividend, you must file a Proof of Claim with the trustee.
Dividends are distributed to confirmed creditors by a trustee. Normally, distribution takes place upon completion of a bankruptcy. In the case of a proposal, dividends may be distributed at various intervals throughout its administration.
In some cases, the trustee may be unable to contact one or more of the creditors. You may want to contact the trustee to find out if any dividends have, in fact, been distributed.
If a creditor can't be located, the trustee is required by law to forward the undistributed dividend or funds to the Office of the Superintendent of Bankruptcy where it is held in trust until the rightful creditor comes forward to make a claim. This money is referred to as unclaimed dividends or funds.
To find out if some money is being held for you, search the unclaimed funds database. You can search the database for free, but there is a $30 fee to make a claim.
I own assets that are located on the premises of a company that has declared bankruptcy and have been unable to retrieve them. What should I do?
Contact the trustee and provide proof of ownership. He or she will then be able to get your property back to you.
In addition, the Bankruptcy and Insolvency Act contains specific provisions for suppliers who have not been paid for goods sold to a business.
I made an advance payment to a company that has declared bankruptcy. What can I do?
If you pre-paid for a service, you become a creditor and the trustee will send you a Proof of Claim form with your creditor's package. Follow the instructions on the form and in the package, and make sure you have all of the required documentation proving that the debtor owes you money.
To be recognized as a creditor and to be eligible to share in the distribution of dividends, if any, you must provide the trustee with a completed Proof of Claim.
How do I complete a Proof of Claim?
The trustee will send you a Proof of Claim form with your creditor's package. Follow the instructions on the form and in the package, and make sure you have all of the required documentation proving that the debtor owes you money.
To be recognized as a creditor and to be eligible to share in the distribution of dividends, if any, you must provide the trustee with a completed Proof of Claim.
What is the role of an inspector in the bankruptcy process?
Inspectors advise the trustee and supervise some aspects of the bankruptcy administration. For example, inspectors approve trustees' fees and the hiring of legal counsel, if required. The Inspectors' Handbook explains the inspectors' role in more detail.
What happens at the first meeting of creditors?
At the first meeting of creditors, the trustee is appointed and inspectors are elected.
At the meeting, creditors may ask questions regarding the bankrupt's assets and liabilities. They can also review the trustee's preliminary report and can instruct the trustee on the administration of the estate.
Click on the following links for more detailed information on
Search the bankruptcy and insolvency records
Learn more about the Wage Earner Protection Program
Search the bankruptcy and insolvency records
Search the Unclaimed funds database
