Statutory Review of the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act

The public consultation on the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act closed on .

About the Consultation

Industry Canada is undertaking this consultation in order to support the Minister of Industry's statutorily-mandatedFootnote 1 report to Parliament regarding the provisions and operation of the BIA and the CCAA and to ensure that the Acts remain effective, efficient, foster competitiveness, support entrepreneurial activity and instil investor and business confidence.

The Department is interested in receiving views and comments on the full range of insolvency policy matters, including those outlined in the Discussion paper.

Legislative Reforms, 2008-2009Footnote 2

The last statutory review process, which commenced in 2002, resulted in legislative amendments that came into force in 2008 and 2009. The amendments were comprehensive in nature – addressing a significant number of consumer, commercial, administrative and technical issues.

On the consumer side, amendments included extending the period before which bankrupts with surplus income or second-time bankrupts are eligible for discharge, exempting registered retirement savings plans from seizure in bankruptcy (subject to limitations), and requiring bankrupts with significant income tax debts to obtain a court-ordered, rather than automatic, discharge from bankruptcy.

On the commercial side, a number of the reforms codified the existing best practices that had developed in corporate restructurings, including related to interim financing, disclaiming and assigning agreements, and asset sales. The reforms also adopted in principle the UNCITRAL Model Law on Cross-Border Insolvency.

Stakeholders have indicated general satisfaction with the operation of the legislative amendments. However, there has been some criticism that specific amendments did not achieve their intended purpose and that certain other proposals were not addressed at all in the reforms.

These consultations provide stakeholders with the opportunity to raise concerns related to the 2008-2009 amendments, including any matters that were not addressed at that time.

Timelines

Pursuant to the statutory review provisions contained in both Acts, the Minister of Industry is to table a report in Parliament on the "provisions and operation" of the Acts by September 2014. The report would then be referred to a Parliamentary committee for study and report within 12 months of the initial tabling. Any actions regarding possible legislative or regulatory reforms as part of the statutory review would follow consideration of the Parliamentary committee's study and report.

Submitting Comments

Interested parties may submit comments via email to: ic.insolvency-insolvabilite.ic@canada.ca.

Written submissions may be addressed to:

Paul Halucha
Director-General
Marketplace Framework Policy Branch
Industry Canada
235 Queen Street, 10th Floor, East Tower
Ottawa, Ontario  K1A 0H5

All submissions received will be posted on this website.

The period for comment will close on

Date modified: