Directive No. 8R7

The Bankruptcy and Insolvency Act Forms

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Date: September 15, 2009

Form 49, Notice to Creditors of Consumer Proposal, has been revised to reflect the legislative amendment to subsection 66.17(2) of the Bankruptcy and Insolvency Act (BIA), which was amended by Chapter 47 of the Statutes of Canada, 2005, and Chapter 36 of the Statutes of Canada, 2007, and to bring to creditors' attention the impact of the change.

According to section 66.17 of the BIA, any creditor who has proved a claim may indicate assent to or dissent from the consumer proposal at or prior to a meeting of creditors, or prior to the expiration of the 45-day period after the filing of the consumer proposal.

The amendment to subsection  66.17(2) is to clarify that any dissent received by the administrator of a consumer proposal is not a request for a meeting of creditors for the purpose of paragraph 66.15(2)(b), and will not be counted in a vote on the consumer proposal unless the administrator is required to call a meeting of creditors pursuant to section 66.15 of the Act.

Form 49 has been amended to reflect the legislative amendment to subsection 66.17(2) and to make it clear that if there is no requirement to call a meeting of creditors, the consumer proposal will be deemed to be accepted regardless of any dissent received. 

Coming into Force

This Directive comes into force on the day on which subsection 1(1) of Chapter 36 of the Statutes of Canada, 2007, comes into force. This Directive applies only to a person who, on or after the day on which subsection 1(1) of Chapter 36 of the Statutes of Canada, 2007, comes into force, is described in one of (a) – (f) listed below:

  1. the person becomes bankrupt;
  2. the person files a notice of intention;
  3. the person files a proposal without having filed a notice of intention;
  4. a proposal is made in respect of the person without the person having filed a notice of intention;
  5. an interim receiver is appointed in respect of the person's property and all or part of the person's property comes into the possession or under the control of the interim receiver; or
  6. all or part of the person's property comes into the possession or under the control of a receiver.

As such, in order to determine whether Directive No. 8R7 applies to a particular insolvency file, the question that needs to be asked is whether one of the "triggering events" described in (a) – (f) occurred on or after the coming into force date.

Enquiries

If you require further information, please do not hesitate to contact the OSB office nearest you.

James Callon
Superintendent of Bankruptcy

Issued: September 15, 2009

(This Directive amends Directive No. 8R6 issued on August 19, 2009, on the same topic)

Interpretation

  1. In this Directive,
    • "Act" means the Bankruptcy and Insolvency Act;
    • "Forms" means the Forms under the Bankruptcy and Insolvency Act;
    • "OSB" means the Office of the Superintendent of Bankruptcy;
    • "Rules" means the Bankruptcy and Insolvency General Rules.

Authority and Purpose

  1. This Directive is issued pursuant to the authority of paragraphs 5(4)(c) and (e) of the Act for the purpose of prescribing amendments to Form 49, Notice to Creditors of Consumer Proposal.

Summary

  1. This Directive amends Form 49 as a result of the coming into force of the  legislative and regulatory amendments to the Act and Rules brought about by Chapter 47 of the Statutes of Canada, 2005, and Chapter 36 of the Statutes of Canada, 2007.

Coming into Force

  1. This Directive comes into force on the day on which subsection 1(1) of Chapter 36 of the Statutes of Canada, 2007, comes into force.  This Directive applies only to a person who, on or after the day on which subsection 1(1) of Chapter 36 of the Statutes of Canada, 2007, comes into force, is described in one of (a) – (f) listed below:
    1. the person becomes bankrupt;
    2. the person files a notice of intention;
    3. the person files a proposal without having filed a notice of intention;
    4. a proposal is made in respect of the person without the person having filed a notice of intention;
    5. an interim receiver is appointed in respect of the person's property and all or part of the person's property comes into the possession or under the control of the interim receiver; or
    6. all or part of the person's property comes into the possession or under the control of a receiver.

As such, in order to determine whether Directive No. 8R7 applies to a particular insolvency file, the question that needs to be asked is whether one of the "triggering events" described in (a) – (f) occurred on or after the coming into force date.

Enquiries

  1. For any questions pertaining to this Directive, please contact your local OSB office.

James Callon
Superintendent of Bankruptcy

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