Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)
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Act current to 2023-03-06 and last amended on 2022-09-01. Previous Versions
PART VAdministration of Estates (continued)
Marginal note:Right of creditor who has not proved claim before declaration of dividend
150 A creditor who has not proved his claim before the declaration of any dividend is entitled on proof of his claim to be paid, out of any money for the time being in the hands of the trustee, any dividend or dividends he may have failed to receive before that money is applied to the payment of any future dividend, but he is not entitled to disturb the distribution of any dividend declared before his claim was proved for the reason that he has not participated therein, except on such terms and conditions as may be ordered by the court.
- R.S., c. B-3, s. 121
Marginal note:Final dividend and division of estate
151 When the trustee has realized all the property of the bankrupt or all thereof that can, in the joint opinion of himself and of the inspectors, be realized without needlessly protracting the administration, and settled or determined or caused to be settled or determined the claims of all creditors to rank against the estate of the bankrupt, he shall prepare a final statement of receipts and disbursements and dividend sheet and, subject to this Act, divide the property of the bankrupt among the creditors who have proved their claims.
- R.S., c. B-3, s. 122
Marginal note:Statement of receipts and disbursements
152 (1) The trustee’s final statement of receipts and disbursements shall contain
(a) a complete account of
(i) all moneys received by the trustee out of the bankrupt’s property or otherwise,
(ii) the amount of interest received by the trustee,
(iii) all moneys disbursed and expenses incurred by the trustee,
(iv) all moneys disbursed by the trustee for services provided by persons related to the trustee, and
(v) the remuneration claimed by the trustee; and
(b) full particulars of, and a description and value of, all the bankrupt’s property that has not been sold or realized together with the reason why it has not been sold or realized and the disposition made of that property.
Marginal note:Prescribed form
(2) The statement referred to in subsection (1) shall be prepared in the prescribed form or as near thereto as the circumstances of the case will permit and together with the dividend sheet shall be submitted to the inspectors for their approval.
Marginal note:Copy to Superintendent
(3) The trustee shall forward a copy of the statement and dividend sheet to the Superintendent after they have been approved by the inspectors.
Marginal note:Superintendent may comment
(4) The Superintendent may comment as he sees fit and his comments shall be placed by the trustee before the taxing officer for his consideration on the taxation of the trustee’s accounts.
Marginal note:Notice of final dividend, etc.
(5) After the Superintendent has commented on the taxation of the trustee’s accounts or advised the trustee that the Superintendent has no comments to make and the trustee’s accounts have been taxed, the trustee shall send, in the prescribed manner, to every creditor whose claim has been proved, to the registrar, to the Superintendent and to the bankrupt
(a) a copy of the final statement of receipts and disbursements;
(b) a copy of the dividend sheet; and
(c) a notice, in the prescribed form, of the trustee’s intention to pay a final dividend after the expiry of 15 days from the sending of the notice, statement and dividend sheet and to apply to the court for his or her discharge on a subsequent date that is not less than 30 days after the payment of the dividend.
(6) No interested person is entitled to object to the final statement and the dividend sheet unless, prior to the expiration of the fifteen days referred to in paragraph (5)(c), that person files notice of his objection with the registrar setting out his reasons therefor and serves a copy of the notice on the trustee.
- R.S., 1985, c. B-3, s. 152
- 1992, c. 1, s. 20, c. 27, s. 55
- 2005, c. 47, s. 93
Marginal note:Dividends on joint and separate properties
153 Where joint and separate properties are being administered, the dividends may be declared together, and the expenses thereof shall be apportioned by the trustee.
- R.S., c. B-3, s. 124
Marginal note:Unclaimed dividends and undistributed funds
154 (1) Before proceeding to discharge, the trustee shall forward to the Superintendent for deposit, according to the directives of the Superintendent, with the Receiver General the unclaimed dividends and undistributed funds that the trustee possesses, other than those exempted by the General Rules, and shall provide a list of the names and the post office addresses, in so far as known, of the creditors entitled to the unclaimed dividends, showing the amount payable to each creditor.
Marginal note:Receiver General to pay claims
(2) The Receiver General shall, after receiving the dividends and funds and the list referred to in subsection (1), on application, pay to any creditor his proper dividend as shown on that list, and such payment has effect as if made by the trustee.
- R.S., 1985, c. B-3, s. 154
- 1992, c. 27, s. 56
Marginal note:Summary administration
155 The following provisions apply to the summary administration of estates under this Act:
(a) all proceedings under this section shall be entitled “Summary Administration”;
(b) the security to be deposited by a trustee under section 16 shall not be required unless directed by the official receiver;
(b.1) [Repealed, 1992, c. 1, s. 161]
(c) a notice of the bankruptcy shall not be published in a local newspaper unless such publication is deemed expedient by the trustee or ordered by the court;
(d) all notices, statements and other documents shall be sent in the prescribed manner;
(d.1) if a first meeting of the creditors is requested by the official receiver or by creditors who have in the aggregate at least 25% in value of the proven claims, the trustee shall call the meeting, in the prescribed form and manner, and it must be held within 21 days after being called;
(e) there shall be no inspectors unless the creditors decide to appoint them, and if no inspectors are appointed, the trustee, in the absence of directions from the creditors, may do all things that may ordinarily be done by the trustee with the permission of the inspectors;
(f) in such circumstances as are specified in directives of the Superintendent, the estates of individuals who, because of their relationship, could reasonably be dealt with as one estate may be dealt with as one estate;
(g) in such circumstances as are specified in directives of the Superintendent and with the approval of the Superintendent, the trustee may deposit all moneys relating to the summary administration of estates in a single trust account;
(h) a notice of bankruptcy and
(i) a notice of impending automatic discharge of the bankrupt, or
(ii) an application for discharge of the bankrupt
may be given in a single notice in the prescribed form;
(i) notwithstanding section 152, the procedure respecting the trustee’s accounts, including the taxation thereof shall be as prescribed;
(j) notwithstanding subsections 41(1), (5) and (6), the procedure for the trustee’s discharge shall be as prescribed; and
(k) the court’s authorization referred to in subsection 30(4) for a sale or disposal of any of the bankrupt’s property to a person who is related to the bankrupt is required only if the creditors decide that the authorization is required.
- R.S., 1985, c. B-3, s. 155
- 1992, c. 1, ss. 16, 161, c. 27, s. 57
- 1997, c. 12, s. 92
- 1999, c. 31, s. 26
- 2005, c. 47, s. 94
Marginal note:Fees and disbursements of trustee
156 The trustee shall receive such fees and disbursements as may be prescribed.
- R.S., c. B-3, s. 127
Marginal note:Agreement to pay fees and disbursements
156.1 An individual bankrupt who has never before been bankrupt under the laws of Canada or of any prescribed jurisdiction and who is not required to make payments under section 68 to the estate of the bankrupt may enter into an agreement with the trustee to pay the trustee’s fees and disbursements if the total amount required to be paid under the agreement is not more than the prescribed amount and that total amount is to be paid before the expiry of the 12-month period after the bankrupt’s discharge. The agreement may be enforced after the bankrupt’s discharge.
- 2005, c. 47, s. 95
Marginal note:All other provisions of Act to apply
157 Except as provided in section 155, all the provisions of this Act, in so far as they are applicable, apply with such modifications as the circumstances require to summary administration.
- R.S., c. B-3, s. 128
157.1 (1) The trustee
(a) shall provide, or provide for, counselling for an individual bankrupt, and
(b) may provide, or provide for, counselling for a person who, as specified in directives of the Superintendent, is financially associated with an individual bankrupt,
in accordance with directives issued by the Superintendent pursuant to paragraph 5(4)(b), and the estate of the bankrupt shall pay the costs of the counselling, as costs of administration of the estate, according to the prescribed tariff.
(2) Where counselling is provided by a trustee to a debtor who is not a bankrupt, that counselling must be provided in accordance with directives issued by the Superintendent pursuant to paragraph 5(4)(b).
Marginal note:Effect on automatic discharge
(3) Subsection 168.1(1) does not apply to an individual bankrupt who has refused or neglected to receive counselling under subsection (1).
- 1992, c. 27, s. 58
- 1997, c. 12, s. 93
- 2005, c. 47, s. 96
Duties of Bankrupts
Marginal note:Duties of bankrupt
158 A bankrupt shall
(a) make discovery of and deliver all his property that is under his possession or control to the trustee or to any person authorized by the trustee to take possession of it or any part thereof;
(a.1) in such circumstances as are specified in directives of the Superintendent, deliver to the trustee, for cancellation, all credit cards issued to and in the possession or control of the bankrupt;
(b) deliver to the trustee all books, records, documents, writings and papers including, without restricting the generality of the foregoing, title papers, insurance policies and tax records and returns and copies thereof in any way relating to his property or affairs;
(c) at such time and place as may be fixed by the official receiver, attend before the official receiver or before any other official receiver delegated by the official receiver for examination under oath with respect to his conduct, the causes of his bankruptcy and the disposition of his property;
(d) within five days following the bankruptcy, unless the time is extended by the official receiver, prepare and submit to the trustee in quadruplicate a statement of the bankrupt’s affairs in the prescribed form verified by affidavit and showing the particulars of the bankrupt’s assets and liabilities, the names and addresses of the bankrupt’s creditors, the securities held by them respectively, the dates when the securities were respectively given and such further or other information as may be required, but where the affairs of the bankrupt are so involved or complicated that the bankrupt alone cannot reasonably prepare a proper statement of affairs, the official receiver may, as an expense of the administration of the estate, authorize the employment of a qualified person to assist in the preparation of the statement;
(e) make or give all the assistance within his power to the trustee in making an inventory of his assets;
(f) make disclosure to the trustee of all property disposed of within the period beginning on the day that is one year before the date of the initial bankruptcy event or beginning on such other antecedent date as the court may direct, and ending on the date of the bankruptcy, both dates included, and how and to whom and for what consideration any part thereof was disposed of except such part as had been disposed of in the ordinary manner of trade or used for reasonable personal expenses;
(g) make disclosure to the trustee of all property disposed of by transfer at undervalue within the period beginning on the day that is five years before the date of the initial bankruptcy event and ending on the date of the bankruptcy, both dates included;
(h) attend the first meeting of his creditors unless prevented by sickness or other sufficient cause and submit thereat to examination;
(i) when required, attend other meetings of his creditors or of the inspectors, or attend on the trustee;
(j) submit to such other examinations under oath with respect to his property or affairs as required;
(k) aid to the utmost of his power in the realization of his property and the distribution of the proceeds among his creditors;
(l) execute any powers of attorney, transfers, deeds and instruments or acts that may be required;
(m) examine the correctness of all proofs of claims filed, if required by the trustee;
(n) in case any person has to his knowledge filed a false claim, disclose the fact immediately to the trustee;
(n.1) inform the trustee of any material change in the bankrupt’s financial situation;
(o) generally do all such acts and things in relation to his property and the distribution of the proceeds among his creditors as may be reasonably required by the trustee, or may be prescribed by the General Rules, or may be directed by the court by any special order made with reference to any particular case or made on the occasion of any special application by the trustee, or any creditor or person interested; and
(p) until his application for discharge has been disposed of and the administration of the estate completed, keep the trustee advised at all times of his place of residence or address.
- R.S., 1985, c. B-3, s. 158
- 1992, c. 27, s. 59
- 1997, c. 12, s. 94
- 2004, c. 25, s. 73
- 2017, c. 26, s. 9
Marginal note:Where bankrupt is a corporation
159 Where a bankrupt is a corporation, the officer executing the assignment, or such
(a) officer of the corporation, or
(b) person who has, or has had, directly or indirectly, control in fact of the corporation
as the official receiver may specify, shall attend before the official receiver for examination and shall perform all of the duties imposed on a bankrupt by section 158, and, in case of failure to do so, the officer or person is punishable as though that officer or person were the bankrupt.
- R.S., 1985, c. B-3, s. 159
- 1992, c. 27, s. 60
Marginal note:Performance of duties by imprisoned bankrupt
160 If a bankrupt is undergoing imprisonment, the court may, in order to enable the bankrupt to attend in court in bankruptcy proceedings at which the bankrupt’s personal presence is required, to attend the first meeting of creditors or to perform the duties required of the bankrupt under this Act, direct that the bankrupt be produced in the protective custody of an executing officer or other duly authorized officer at any time and place that may be designated, or it may make any other order that it deems proper and requisite in the circumstances.
- R.S., 1985, c. B-3, s. 160
- 2004, c. 25, s. 74(E)
Examination of Bankrupts and Others
Marginal note:Examination of bankrupt by official receiver
161 (1) Before a bankrupt’s discharge, the official receiver shall, on the attendance of the bankrupt, examine the bankrupt under oath with respect to the bankrupt’s conduct, the causes of the bankruptcy and the disposition of the bankrupt’s property and shall put to the bankrupt the prescribed question or questions to the like effect and such other questions as the official receiver may see fit.
Marginal note:Record of examination
(2) The official receiver shall make a record of the examination and shall forward a copy of the record to the Superintendent and the trustee.
Marginal note:Record of examination available to creditors on request
(2.1) If the examination is held
(a) before the first meeting of creditors, the record of the examination shall be communicated to the creditors at the meeting; or
(b) after the first meeting of creditors, the record of examination shall be made available to any creditor who requests it.
Marginal note:Examination before another official receiver
(3) When the official receiver deems it expedient, the official receiver may authorize an examination to be held before any other official receiver.
Marginal note:Official receiver to report failure to attend
(4) Where a bankrupt fails to present himself for examination by the official receiver, the official receiver shall so report to the first meeting of creditors.
- R.S., 1985, c. B-3, s. 161
- 1997, c. 12, s. 95
- 2004, c. 25, s. 75(F)
- 2005, c. 47, s. 97
- Date modified: