Bankruptcy Law in Canada
Bankruptcy is the worst nightmare of any business owner or Organization. People see it as the beginning of the end of any business, individual or organization. Bankruptcy itself is a legal process that is initiated by a creditor against a debtor that is unable to pay outstanding debts. It begins with filing of petition on behalf of a creditor by a bankruptcy lawyer against a debtor. Different countries and states have their own separate bankruptcy law that is peculiar to their environment. This article is tailored towards unveiling the bankruptcy law in Canada.
There are several bankruptcy laws in Canada that will help individuals and business organizations get a fresh start after losing everything to creditors. These
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However, Canadian’s bankruptcy laws are unique and comprehensive. The Major legislation in Canada covering bankruptcies and insolvencies related matter is known are “Bankruptcy and Insolvency Act” (BIA). It does not only cover bankruptcy liquidation, it also takes care of debtor reorganization.
There is another law known as the Companies’ Creditors Arrangement Act (the CCAA). This law helps to restructure larger companies after suffering from a bankrupt. Before a debtor or organization can seek protection of the CCAA, such company must be insolvent either via liquidity or balance sheet and must have incurred debt worth of five million dollars.
The emphasis of this article will be on Bankruptcy and Insolvency Acts (BIA) and how it helps financially troubled and honest citizen with their financial trouble.
The BIA was established to protect the rights of debtors and creditors as well as informing trustees, courts and other stakeholders of their responsibilities, powers and duties. In order to properly protect the rights of debtors, creditors and other stakeholders, the BIA is organized into 14 different parts; these parts are discussed
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It gives the various steps for writing a bankruptcy petition against an individual or organization as well as the conditions that will make a creditor to petition for bankruptcy.
Proposals: This aspect of Canadian BIA deals with how a debtor should send a proposal to his creditor, this includes consumer proposal. It also gives detailed explanation on the roles of a trustee and how to appoint a reliable and professional trustee. One of the most obvious qualifications of a bankruptcy trustee in Canada is to have a license from the office of the Superintendent of Bankruptcy.
Property of the Bankrupt: That an individual is unable to meet up with his financial obligation with his creditors and other stakeholders doesn’t warrant such individual or organization to be treated unfairly. In view of this, the BIA has a part dedicated to how the property of the insolvent company or individuals will be dealt
Engineers, contractors, and other businesses must be mindful of and knowledgeable of their legal obligations when performing their occupation or supplying a product. Negligence in the design or construction of a product that results in damage or bodily harm, or could result in damage or bodily harm, can result in liability for economic loss under Canadian Tort law. Engineers, architects, and contractors need to be respectful of their duty of care to ensure their product is precisely produced with no danger of negligence.
In Canada there is a process to lawmaking that follows the rationalistic model — they are the functionalist view, conflict theory and the ‘moral entrepreneur’ thesis. In this essay, the rationalistic model, will at first, be explained then this paper will inform the reader to the functionalist view, the conflict perspective then the moral entrepreneur theory and what four different Canadian laws follow this theory. The essay will then, finally, explain which law is best understood with reference to the theory that it is linked to in comparison with others.
The legislation is a complex in part because those creditors fall into so many categories-secured creditors, unsecured creditors, government creditors, and so on-each with its own special rights and interests in the bankruptcy process.
Self-government gives greater control to and law-making authority over a complete range of control including governance and social and economic development. Self-government provisions may include health care and social services, police services, housing property rights, and children warfare. Unconditional support, meeting the diverse economic conditions of Aboriginal communities, encouragement of taxation and many other provisions for equity among Aboriginal governments and adjustment to fit the range of powers exercised and services delivered all help Aboriginals. The more the organizations of administration match the social originations of their constituent groups, the more noteworthy their authenticity and viability. Living conditions were raised to much higher standards when the Aboriginal self-government formed. It provided great help in the lives of Canada’s Aboriginal
Taxation levels are very complicated for Canadian citizens. I believe that Canada will economically break free when taxation levels become less onerous.
Canada was founded in 1867, laws have existed in our society. At the time, the vast majority of didn’t exist like how they today, and were rules known as what political philosopher Thomas Hobbes referred to as “Social Contracts”. Social Contracts can best be described as an acted-upon agreement among a society of individuals which is conceived with a goal of mutual benefit and regulation of ill-behavior. Social Contracts were never cut-in-stone rules, and were never structurally implemented in Canadas legal system at the time of her foundation. Many social contracts in Canadas history have evolved into laws today, and vice-versa. For example there were many actions heavily frowned upon by society in the early 1900s, however there was no ambiguous
Over the years, the process of declaring bankruptcy has become incredibly simple. Because of this change, the number of people declaring bankruptcy is at an all time high. Today, bankruptcy is a common thing among companies and individuals alike. The American bankruptcy law allows people to avoid paying their debts by offering the debtors a discharge without a harsh consequence. By not having repercussions for their actions, bankruptcy filers often plan future bankruptcies, allowing them to steal even more money from creditors with no punishment. There are 13 different chapters in the bankruptcy system with the principal chapters being 7,11, and 13. You can only file for bankruptcy under these three chapters, the others are there to explain how the system works. Under Chapter 7, a person’s debts are wiped away while under chapters 11 and 13, debts are frozen while the debtor figures out a way to repay them. The people filing Chapter 7 are stealing money from creditors who are trying to help them. It is one’s moral duty to pay back his debts and one should be disgraced and embarrassed if they borrowed money they cannot pay back. Over 1,400,000 people filed for bankruptcy in 1998 under Chapter 7, Chapter 11, and Chapter 13. 75% of them were under Chapter 7, leaving “retailers, bankers, and credit-card companies” with $40 billion in unpaid debts (Kopecki 5) (Pomykala 16). The use of different reforms could cut down on the number of Chapter 7 filings and put responsibility back on the debtor. Declaring Chapter 7 bankruptcy is ethically and morally wrong and through different reforms this current “right” would be considered a crime.
Canada’s population as of 2014 is an estimated 35,344,962; of that amount it has been researched that 1-3% experience some type of post-traumatic stress. In terms of law ...
Timeline of this case should be clearly organized in order to better understanding this case. In 2009, Poor Son transferred Rich Grandson to Parent. In 2010, Poor Son filed a voluntary petition for reorganization under Chapter 11 of the US bankruptcy code, and Parent deconsolidated Poor Son from statements. In 2011, Poor Son filed an action against Parent seeking to void the transfer of Rich Grandson. In May 2012, the bankruptcy court held a selection meeting in which it considered competing plans of reorganization submitted by four bidders. In June 2012, OtherCo, an unrelated party, became the wining plan sponsor. In July 2012, OtherCo rescind its offer because the bad evonomic condition. In December 2014, the bankruptcy court recommended
Prior to the winding-up of an insolvent company, its creditors may individually enforce any measure available to them in order to obtain payment of the debt owed to them by such company. However, upon the opening of the winding-up proceedings these individual actions are replaced by a collective insolvency regime which attempts to ensure the rateable and equitable distribution of the assets of the insolvent company among its creditors. This distribution is known as pari passu distribution.
There is a major difference between what law is, and what law ought to be. Although several ideas derived from natural law theory line up with the beliefs of the constitutional monarchy of Canada, there are inconsistencies. That said, the system of law in Canada is most comparable with Legal Positivism. After analyzing the purpose of Legal Positivism, the similarities between it and Canada’s legal system become obvious. Both systems exercise the concept of primary and secondary rules, both contain a theory of legal obligation and lastly, both have a theory which answers for judicial interpretation.
Bankruptcy is where an individual or in this case a corporation claims that is not able to pay its lenders and/or creditors any more. By doing this the filer gains protection from its lenders while reorganizing itself to stay in business. Bankruptcy is defined by the Congress under the U.S. Bankruptcy Code, in which the Congress revised in 2005 called Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). This act addresses the increased number of bankruptcy filing, loopholes and incentives that allowed for abuse and the financial ability of debtors.
Among the study’s findings were that the deciding factor of the predictor of bankruptcy should not be only a few ratios, as the measure of a company’s financial solvency may differ as the firm’s situations differ. The important question is to which ratios are to be used and of those ratios chosen, which ratios are given priority weight.
Chapter 7 and Chapter 13 bankruptcies are full of advantages and disadvantages. But at the same time they are very different. Without knowing these differences a person could lose many things from money to possessions.
A creditor who is not a party to the bankruptcy proceedings, but who has an interest in the proceedings, may file an ex parte application with the bankruptcy court. An insolvent debtor may file a debtor’s petition for voluntary bankruptcy. The insolvent debtor must provide to the court a summary of the debts and assets. An agreement between a debtor and creditor that the amount stated as being owed to the creditor is accurate is an account statement. However, an account that is open and unsettled is an account that is current.