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Bankruptcy and Insolvency General Rules (C.R.C., c. 368)

Regulations are current to 2024-10-30 and last amended on 2011-03-25. Previous Versions

Taxation of Accounts and Discharge of Trustee (continued)

Summary Administration (continued)

  •  (1) At the time of the hearing, the registrar shall consider the creditors’ objections and the letter of comment issued by the Superintendent, and shall tax the trustee’s accounts accordingly.

  • (2) If the registrar taxes a trustee’s accounts as submitted, the trustee shall

    • (a) take the trustee’s fee as taxed;

    • (b) send a final dividend to each creditor to whom one is owed; and

    • (c) within two months after the date of the taxation order,

      • (i) close the bank account used in administering the estate of the bankrupt, if that account is not a consolidated account, or, if the account is a consolidated account, ensure that all estate funds have been withdrawn from it,

      • (ii) remit any unclaimed dividends and undistributed funds to the Superintendent, and

      • (iii) send to the Division Office a certificate of compliance and deemed discharge, in prescribed form.

  • (3) A trustee is deemed to be discharged on meeting the requirements of paragraphs (2)(b) and (c).

  • (4) If the registrar taxes a trustee’s accounts otherwise than as submitted, the trustee shall

    • (a) take the trustee’s fee as taxed;

    • (b) send a final dividend to each creditor to whom one is owed, in accordance with the taxation order; and

    • (c) within two months after the date of the taxation order,

      • (i) close the bank account used in administering the estate of the bankrupt if that account is not a consolidated account or, if the account is a consolidated account, ensure that all estate funds have been withdrawn from it,

      • (ii) remit any unclaimed dividends and undistributed funds to the Superintendent,

      • (iii) send to the Division Office and to each creditor a revised final statement of receipts and disbursements, a revised dividend sheet and a copy of the taxation order, and

      • (iv) send to the Division Office and to the registrar a certificate of compliance and deemed discharge, in prescribed form.

  • (5) A trustee is deemed to be discharged on meeting the requirements of paragraphs (4)(b) and (c).

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)

Books, Records and Documents

  •  (1) Unless the court orders otherwise, a trustee shall keep, for at least four years after the date of the trustee’s discharge, the books, records and documents relating to the administration of that estate.

  • (2) Unless the court orders otherwise, the trustee shall, after being discharged, send to the latest known address of the debtor, bankrupt or officer of the bankrupt corporation, a written notice, unless there is a written waiver giving up the right to be notified, that they or their representative may, within the 30 days following the sending of the notice, take back any of the debtor’s or bankrupt’s books, records and documents to which subsection (1) does not apply.

  • (3) If no person has taken back the books, records and documents within 30 days after the sending of the notice or the giving of the waiver referred to in subsection (2), the trustee may dispose of them.

  • (4) Documents on which legal counsel has a lien or a right of retention shall be returned to the legal counsel on completion of the administration of the estate to which the documents relate.

  • SOR/98-240, s. 1
  • SOR/2007-61, ss. 13, 63(E)

Application for Bankruptcy Order

[
  • SOR/2007-61, s. 14
]

 No bankruptcy application filed with the registrar in the judicial district of the locality of the debtor may be served pursuant to subsection 70(1) unless the court has signed it and affixed to it the seal of the court.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 64
  •  (1) A notice indicating the time and place of the hearing of the bankruptcy application, together with a certified copy of the application and of the affidavit referred to in subsection 43(3) of the Act, must be served on the debtor, on the trustee named in the application and on the Division Office at least 10 days, or any shorter period that the court may order, before the hearing.

  • (2) After service of an application in accordance with this section, a copy of that application must immediately be filed at the office of the registrar.

  • (3) Subject to section 71, service on the debtor under subsection (1) must be effected by personal service.

  • (4) For the purposes of paragraph 256(3)(c) of the Act, the interval is 10 days.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 15
  • SOR/2009-218, s. 10
  •  (1) If the court determines that service of documents cannot, for cause, be effected by personal service as required by subsection 70(3), the court shall make an order stating the manner of service of the documents.

  • (2) As soon as an order is made pursuant to subsection (1), the documents shall be served together with the order.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)

 Service of a bankruptcy application must be proved by affidavit or bailiff’s return of service, attached to the original application and filed with the court at least two days before the date of the hearing set out in the application.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 16

 In the case of a deceased debtor, service of a bankruptcy application must be effected on the executor or administrator of the estate or the liquidator of the deceased debtor’s succession.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 16

 A debtor who contests a bankruptcy application shall file with the court in which the application was filed a notice setting out the contested allegations contained in the application, the grounds for contesting them and the debtor’s address, and shall serve a copy of the notice on the applicant or their barrister or solicitor or, in the Province of Quebec, their advocate, at least two days before the date of the hearing set out in the application.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 16

 If a debtor who has filed a notice under section 74 does not appear at the hearing of the bankruptcy application, the court may make a bankruptcy order based on the allegations contained in the application if the court considers those allegations to be sufficient.

  • SOR/92-579, s. 13
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 16

 If the hearing of a bankruptcy application has been stayed for the trial of an issue in dispute on a question of fact, the registrar shall, as soon as the issue has been determined, on the application of the debtor or the applicant, fix a time and place for the resumption of the hearing, and the party who makes the application shall give the other party at least two days’ notice of the time and place fixed by the registrar.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 16

 [Repealed, SOR/98-240, s. 1]

Interim Receiver

 [Repealed, SOR/2009-218, s. 11]

 If a bankruptcy application is dismissed, the court may, on application presented within 30 days after the day of the dismissal, give judgment with respect to any claim for damages, or with respect to any claim other than a claim for damages arising out of the appointment of an interim receiver, and may make any orders that the court sees fit.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 17
  •  (1) An interim receiver shall apply to the court for taxation of accounts and discharge within two months after completion of the interim receiver’s duties, after giving notice to

    • (a) the debtor, or in the case of a bankruptcy, the trustee;

    • (b) every creditor; and

    • (c) the Division Office.

  • (2) The notice referred to in subsection (1) must

    • (a) be in prescribed form; and

    • (b) have attached to it a copy of the interim receiver’s statement of receipts and disbursements, in prescribed form and stating

      • (i) the number of hours spent, the tasks performed, the hourly rates and other factors for consideration in the calculation of fees, and

      • (ii) the expenses incurred by the interim receiver, attaching a copy of any bills of costs for legal services.

  • SOR/98-240, s. 1

 A person referred to in paragraph 79(1)(a) or (b) may object to the taxation of the accounts and discharge of the interim receiver by filing a notice of objection with the court within 30 days after the giving of the notice referred to in subsection 79(1).

  • SOR/98-240, s. 1

 If no objection is filed within 30 days after the giving of the notice referred to in subsection 79(1), the interim receiver’s accounts are deemed to have been taxed and the interim receiver is deemed to be discharged, unless the court requires that the accounts be taxed on their own merit.

  • SOR/92-579, s. 15
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)
  •  (1) If an objection is filed within 30 days after the giving of the notice referred to in subsection 79(1), the interim receiver shall, within 10 days after the filing of the objection, apply to the court for a date for a hearing, and shall send a notice of the date of the hearing to the objecting party.

  • (2) The court, at the hearing, shall tax the interim receiver’s accounts on their own merit and may discharge the interim receiver, who shall send the Division Office a copy of the court order relating to the taxation and discharge.

  • SOR/78-389, s. 3
  • SOR/92-579, s. 15
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 63(E)

 [Repealed, SOR/98-240, s. 1]

Bankruptcy Orders

  •  (1) The applicant shall, as soon as possible and not later than two days after a bankruptcy order is made under subsection 43(6) of the Act, serve, deliver personally or send by courier, facsimile or electronic transmission a copy of the order to the trustee appointed under subsection 43(9) of the Act.

  • (2) Within two days after receiving the copy of the bankruptcy order, the trustee shall serve a copy of the order on the bankrupt and send a copy to the Division Office.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 18
  •  (1) An application to revoke a bankruptcy order or to stay proceedings may be made to the court if a notice of the application, together with copies of supporting affidavits, is served on the applicant and the trustee and is filed with the Division Office.

  • (2) Pending the hearing of the application mentioned in subsection (1), the court may make an interim order staying the whole or any part of the proceedings.

  • SOR/98-240, s. 1
  • SOR/2007-61, s. 19

 [Repealed, SOR/98-240, s. 1]

Assignments

 An official receiver shall, on appointing a trustee pursuant to subsection 49(4) of the Act, prepare a certificate of appointment, in prescribed form, and send a copy of it to the trustee.

  • SOR/98-240, s. 1

 On receiving from a bankrupt a statement of affairs described in paragraph 158(d) of the Act, a trustee shall file a copy of it at the office of the official receiver.

  • SOR/98-240, s. 1

 [Repealed, SOR/98-240, s. 1]

 The court may order the trustee to file with the court, before or immediately after the first meeting of the creditors, a copy of the following documents:

  • (a) the assignment that was filed with the official receiver;

  • (b) the statement of affairs that was filed with the official receiver; and

  • (c) the minutes of the first meeting of creditors.

  • SOR/92-579, s. 20
  • SOR/98-240, s. 1
  • SOR/2007-61, s. 20(E)
  • SOR/2009-218, s. 12
 

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