Bankruptcy and Insolvency Act

Marginal note:Recommendation

• 170.1 (1) The report prepared under subsection 170(1) shall include a recommendation as to whether or not the bankrupt should be discharged subject to conditions, having regard to the bankrupt’s conduct and ability to make payments.

• Marginal note:Factors to be considered

  (2) The trustee shall consider the following matters in making a recommendation under subsection (1):

  • (a) whether the bankrupt has complied with a requirement imposed on the bankrupt under section 68;

  • (b) the total amount paid to the estate by the bankrupt, having regard to the bankrupt’s indebtedness and financial resources; and

  • (c) whether the bankrupt, if the bankrupt could have made a viable proposal, chose to proceed to bankruptcy rather than to make a proposal as the means to resolve the indebtedness.

• Marginal note:Presumption

  (3) A recommendation that the bankrupt be discharged subject to conditions is deemed to be an opposition to the discharge of the bankrupt.

• Marginal note:Request for mediation

  (4) Where the bankrupt does not agree with the recommendation of the trustee, the bankrupt may, before the expiration of the ninth month after the date of the bankruptcy, send the trustee a request in writing to have the matter determined by mediation.

• Marginal note:Mediation request to be sent to official receiver

  (5) Where a request for mediation has been made under subsection (4) or the discharge of the bankrupt is opposed by a creditor or the trustee in whole or in part on a ground referred to in paragraph 173(1)(m) or (n), the trustee shall send an application for mediation in prescribed form to the official receiver within five days after the expiration of the nine month period referred to in subsection (4) or within such further time as the official receiver may allow.

• Marginal note:Mediation procedure

  (6) A mediation shall be in accordance with prescribed procedures.

• Marginal note:Court hearing

  (7) Where the issues submitted to mediation are not thereby resolved or the bankrupt has failed to comply with conditions that were established by the trustee or as a result of the mediation, the trustee shall forthwith apply to the court for an appointment for the hearing of the matter, which hearing shall be held

  • (a) within thirty days after the day the appointment is made, or

  • (b) at such later time as may be fixed by the court,

  and the provisions of this Part relating to applications to the court in relation to the discharge of a bankrupt apply, with such modifications as the circumstances require, in respect of an application to the court under this subsection.

• Marginal note:Certificate of discharge

  (8) Where the bankrupt complies with the conditions imposed on the bankrupt by the trustee in relation to the discharge of the bankrupt or as a result of mediation referred to in this section, the trustee shall

  • (a) issue to the bankrupt a certificate of discharge in the prescribed form releasing the bankrupt from all debts other than a debt referred to in subsection 178(1); and

  • (b) send a copy of the certificate of discharge to the Superintendent.

• Marginal note:File

  (9) Documents contained in a file on the mediation of a matter under this section form part of the records referred to in subsection 11.1(2).