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Bankruptcy and Insolvency Act (R.S.C., 1985, c. B-3)

Act current to 2022-09-11 and last amended on 2022-09-01. Previous Versions

PART VIICourts and Procedure (continued)

Authority of the Courts (continued)

Marginal note:Enforcement of orders of other courts

  •  (1) An order made by the court under this Act shall be enforced in the courts having jurisdiction in bankruptcy elsewhere in Canada in the same manner in all respects as if the order had been made by the court hereby required to enforce it.

  • Marginal note:Courts to be auxiliary to each other

    (2) All courts and the officers of all courts shall severally act in aid of and be auxiliary to each other in all matters of bankruptcy, and an order of one court seeking aid, with a request to another court, shall be deemed sufficient to enable the latter court to exercise, in regard to the matters directed by the order, such jurisdiction as either the court that made the request or the court to which the request is made could exercise in regard to similar matters within its jurisdiction.

  • Marginal note:Enforcement of warrants

    (3) Any warrant of a court may be enforced in any part of Canada in the same manner and subject to the same privileges as a warrant issued by a justice of the peace under or in pursuance of the Criminal Code may be executed against a person charged with an indictable offence.

  • R.S., c. B-3, s. 158

Marginal note:Search warrants

  •  (1) Where on ex parte application by the trustee or interim receiver the court is satisfied by information on oath that there are reasonable grounds to believe there is in any place or premises any property of the bankrupt, the court may issue a warrant authorizing the trustee or interim receiver to enter and search that place or premises and to seize the property of the bankrupt, subject to such conditions as may be specified in the warrant.

  • Marginal note:Use of force

    (1.1) In executing a warrant issued under subsection (1), the trustee or interim receiver shall not use force unless the trustee or interim receiver is accompanied by a peace officer and the use of force has been specifically authorized in the warrant.

  • Marginal note:Commitment to prison

    (2) Where the court commits any person to prison, the commitment may be to such convenient prison as the court thinks expedient.

  • R.S., 1985, c. B-3, s. 189
  • R.S., 1985, c. 31 (1st Supp.), s. 28

Marginal note:Evidence of proceedings in bankruptcy

  •  (1) Any document made or used in the course of any bankruptcy proceedings or other proceedings had under this Act shall, if it appears to be sealed with the seal of any court having jurisdiction in bankruptcy, purports to be signed by any judge thereof or is certified as a true copy by any registrar thereof, be admissible in evidence in all legal proceedings.

  • Marginal note:Documentary evidence as proof

    (2) The production of an original document relating to any bankruptcy proceeding or a copy certified by the person making it as a true copy thereof or by a successor in office of that person as a true copy of a document found among the records in his control or possession is evidence of the contents of those documents.

  • R.S., c. B-3, s. 160

Marginal note:Death of bankrupt, witness, etc.

 In case of the death of the bankrupt or the spouse or common-law partner of a bankrupt or of a witness, whose evidence has been received by any court in any proceedings under this Act, the deposition of the deceased person, purporting to be sealed with the seal of the court, or a copy thereof purporting to be so sealed, shall be admitted as evidence of the matters therein deposed to.

  • R.S., 1985, c. B-3, s. 191
  • R.S., 1985, c. 31 (1st Supp.), s. 76(E)
  • 2000, c. 12, s. 19

Powers of Registrar

Marginal note:Powers of registrar

  •  (1) The registrars of the courts have power and jurisdiction, without limiting the powers otherwise conferred by this Act or the General Rules,

    • (a) to hear bankruptcy applications and to make bankruptcy orders if they are not opposed;

    • (b) to hold examinations of bankrupts or other persons;

    • (c) to grant orders of discharge;

    • (d) to approve proposals where they are not opposed;

    • (e) to make interim orders in cases of urgency;

    • (f) to hear and determine any unopposed or ex parte application;

    • (g) to summon and examine the bankrupt or any person known or suspected to have in his possession property of the bankrupt, or to be indebted to him, or capable of giving information respecting the bankrupt, his dealings or property;

    • (h) to hear and determine matters relating to proofs of claims whether or not opposed;

    • (i) to tax or fix costs and to pass accounts;

    • (j) to hear and determine any matter with the consent of all parties;

    • (k) to hear and determine any matter relating to practice and procedure in the courts;

    • (l) to settle and sign all orders and judgments of the courts not settled or signed by a judge and to issue all orders, judgments, warrants or other processes of the courts;

    • (m) to perform all necessary administrative duties relating to the practice and procedure in the courts; and

    • (n) to hear and determine appeals from the decision of a trustee allowing or disallowing a claim.

  • Marginal note:May be exercised by judge

    (2) The powers and jurisdiction conferred by this section or otherwise on a registrar may at any time be exercised by a judge.

  • Marginal note:Registrar may not commit

    (3) A registrar has no power to commit for contempt of court.

  • Marginal note:Appeal from registrar

    (4) A person dissatisfied with an order or decision of a registrar may appeal therefrom to a judge.

  • Marginal note:Order of registrar

    (5) An order made or act done by a registrar in the exercise of his powers and jurisdiction shall be deemed the order or act of the court.

  • Marginal note:Reference to judge

    (6) A registrar may refer any matter ordinarily within his jurisdiction to a judge for disposition.

  • Marginal note:Judge may hear

    (7) A judge may direct that any matter before a registrar be brought before the judge for hearing and determination.

  • Marginal note:Registrars to act for each other

    (8) Any registrar in bankruptcy may act for any other registrar.

  • R.S., 1985, c. B-3, s. 192
  • 1992, c. 27, s. 67
  • 2004, c. 25, s. 88

Appeals

Marginal note:Court of Appeal

 Unless otherwise expressly provided, an appeal lies to the Court of Appeal from any order or decision of a judge of the court in the following cases:

  • (a) if the point at issue involves future rights;

  • (b) if the order or decision is likely to affect other cases of a similar nature in the bankruptcy proceedings;

  • (c) if the property involved in the appeal exceeds in value ten thousand dollars;

  • (d) from the grant of or refusal to grant a discharge if the aggregate unpaid claims of creditors exceed five hundred dollars; and

  • (e) in any other case by leave of a judge of the Court of Appeal.

  • R.S., 1985, c. B-3, s. 193
  • 1992, c. 27, s. 68

Marginal note:Appeal to Supreme Court

 The decision of the Court of Appeal on any appeal is final and conclusive unless special leave to appeal therefrom to the Supreme Court of Canada is granted by that Court.

  • R.S., c. B-3, s. 164
  • R.S., c. 44(1st Supp.), s. 10

Marginal note:Stay of proceedings on filing of appeal

 Except to the extent that an order or judgment appealed from is subject to provisional execution notwithstanding any appeal therefrom, all proceedings under an order or judgment appealed from shall be stayed until the appeal is disposed of, but the Court of Appeal or a judge thereof may vary or cancel the stay or the order for provisional execution if it appears that the appeal is not being prosecuted diligently, or for such other reason as the Court of Appeal or a judge thereof may deem proper.

  • R.S., 1985, c. B-3, s. 195
  • 1992, c. 27, s. 69

Marginal note:No stay of proceedings unless ordered

 An appeal to the Supreme Court of Canada does not operate as a stay of proceedings, except to the extent ordered by that Court.

  • R.S., c. B-3, s. 166
  • R.S., c. 44(1st Supp.), s. 10

Legal Costs

Marginal note:Costs in discretion of court

  •  (1) Subject to this Act and to the General Rules, the costs of and incidental to any proceedings in court under this Act are in the discretion of the court.

  • Marginal note:How costs awarded

    (2) The court in awarding costs may direct that the costs shall be taxed and paid as between party and party or as between solicitor and client, or the court may fix a sum to be paid in lieu of taxation or of taxed costs, but in the absence of any express direction costs shall follow the event and shall be taxed as between party and party.

  • Marginal note:Personal liability of trustee for costs

    (3) Where an action or proceeding is brought by or against a trustee, or where a trustee is made a party to any action or proceeding on his application or on the application of any other party thereto, he is not personally liable for costs unless the court otherwise directs.

  • Marginal note:When costs payable

    (4) No costs shall be paid out of the estate of the bankrupt, excepting the costs of persons whose services have been authorized by the trustee in writing and such costs as have been awarded against the trustee or the estate of the bankrupt by the court.

  • (5) [Repealed, 2005, c. 47, s. 110]

  • Marginal note:Priority of payment of legal costs

    (6) Legal costs shall be payable according to the following priorities:

    • (a) commissions on collections, which are a claim ranking above any other claim on any sums collected;

    • (b) when duly authorized by the court or approved by the creditors or the inspectors, costs incurred by the trustee after the bankruptcy and prior to the first meeting of creditors;

    • (c) the costs on an assignment or costs incurred by an applicant creditor up to the issue of a bankruptcy order;

    • (d) costs awarded against the trustee or the estate of the bankrupt; and

    • (e) costs for legal services otherwise rendered to the trustee or the estate of the bankrupt.

  • Marginal note:Costs of discharge opposed

    (6.1) If a creditor opposes the discharge of a bankrupt, the court may, if it grants the discharge on the condition that the bankrupt pay an amount or consent to a judgment to pay an amount, award costs, including legal costs, to the opposing creditor out of the estate in an amount that is not more than the amount realized by the estate under the conditional order, including any amount brought into the estate under the consent to the judgment.

  • Marginal note:Costs where opposition frivolous or vexatious

    (7) If a creditor opposes the discharge of a bankrupt and the court finds the opposition to be frivolous or vexatious, the court may order the creditor to pay costs, including legal costs, to the estate.

  • (8) [Repealed, 2005, c. 47, s. 110]

  • R.S., 1985, c. B-3, s. 197
  • 1997, c. 12, s. 106
  • 2004, c. 25, s. 89
  • 2005, c. 47, s. 110

PART VIIIOffences

Marginal note:Bankruptcy offences

  •  (1) Any bankrupt who

    • (a) makes any fraudulent disposition of the bankrupt’s property before or after the date of the initial bankruptcy event,

    • (b) refuses or neglects to answer fully and truthfully all proper questions put to the bankrupt at any examination held pursuant to this Act,

    • (c) makes a false entry or knowingly makes a material omission in a statement or accounting,

    • (d) after or within one year immediately preceding the date of the initial bankruptcy event, conceals, destroys, mutilates, falsifies, makes an omission in or disposes of, or is privy to the concealment, destruction, mutilation, falsification, omission from or disposition of, a book or document affecting or relating to the bankrupt’s property or affairs, unless the bankrupt had no intent to conceal the state of the bankrupt’s affairs,

    • (e) after or within one year immediately preceding the date of the initial bankruptcy event, obtains any credit or any property by false representations made by the bankrupt or made by any other person to the bankrupt’s knowledge,

    • (f) after or within one year immediately preceding the date of the initial bankruptcy event, fraudulently conceals or removes any property of a value of fifty dollars or more or any debt due to or from the bankrupt, or

    • (g) after or within one year immediately preceding the date of the initial bankruptcy event, hypothecates, pawns, pledges or disposes of any property that the bankrupt has obtained on credit and has not paid for, unless in the case of a trader the hypothecation, pawning, pledging or disposing is in the ordinary way of trade and unless the bankrupt had no intent to defraud,

    is guilty of an offence and is liable, on summary conviction, to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year or to both, or on conviction on indictment, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding three years, or to both.

  • Marginal note:Failure to comply with duties

    (2) A bankrupt who, without reasonable cause, fails to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 is guilty of an offence and is liable

    • (a) on summary conviction, to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year, or to both; or

    • (b) on conviction on indictment, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding three years, or to both.

  • R.S., 1985, c. B-3, s. 198
  • 1992, c. 27, s. 71
  • 1997, c. 12, s. 107
  • 2004, c. 25, s. 90(F)

Marginal note:Failure to disclose fact of being undischarged

 An undischarged bankrupt who

  • (a) engages in any trade or business without disclosing to all persons with whom the undischarged bankrupt enters into any business transaction that the undischarged bankrupt is an undischarged bankrupt, or

  • (b) obtains credit to a total of $1,000 or more from any person or persons without informing them that the undischarged bankrupt is an undischarged bankrupt,

is guilty of an offence punishable on summary conviction and is liable to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year, or to both.

  • R.S., 1985, c. B-3, s. 199
  • 1992, c. 27, s. 72
  • 2005, c. 47, s. 111

Marginal note:Bankrupt failing to keep proper books of account

  •  (1) Any person becoming bankrupt or making a proposal who has on any previous occasion been bankrupt or made a proposal to the person’s creditors is guilty of an offence punishable on summary conviction and is liable to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year, or to both, if

    • (a) being engaged in any trade or business, at any time within the period beginning on the day that is two years before the date of the initial bankruptcy event and ending on the date of the bankruptcy, both dates included, that person has not kept and preserved proper books of account; or

    • (b) within the period mentioned in paragraph (a), that person conceals, destroys, mutilates, falsifies or disposes of, or is privy to the concealment, destruction, mutilation, falsification or disposition of, any book or document affecting or relating to the person’s property or affairs, unless the person had no intent to conceal the state of the person’s affairs.

  • Marginal note:Proper books of account defined

    (2) For the purposes of this section, a debtor shall be deemed not to have kept proper books of account if he has not kept such books or accounts as are necessary to exhibit or explain his transactions and financial position in his trade or business, including a book or books containing entries from day to day in sufficient detail of all cash received and cash paid, and, where the trade or business has involved dealings in goods, also accounts of all goods sold and purchased, and statements of annual and other stock-takings.

  • R.S., 1985, c. B-3, s. 200
  • 1992, c. 27, s. 73
  • 1997, c. 12, s. 108
  • 2004, c. 25, s. 91(F)
 
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