Bankruptcy in Canada is set out by federal law, in the Bankruptcy and Insolvency Act and is applicable to businesses and individuals. The Office of the Superintendent of Bankruptcy, a federal agency, is responsible for ensuring that bankruptcies are administered in a fair and orderly manner. Licensed Insolvency Trustees administer bankruptcy estates.
Bankruptcy is filed when a person or a company becomes insolvent and cannot pay their debts as they become due.
Duties of Licensed Insolvency Trustees
Some of the duties of the Licensed Insolvency Trustee are to:
- Review the file for any fraudulent preferences or reviewable transactions
- Chair meetings of creditors
- Sell any non-exempt assets
- Object to the bankrupt’s discharge
- Distribute funds to creditors
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