GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Bankruptcy and Insolvency Act — B-3 137
Postponement of claims — creditor not at arm’s length 137 (1) A creditor who, at any time before the bankruptcy of a debtor, entered into a transaction with the debtor and who was not at arm’s length with the debtor at that time is not entitled to claim a dividend in respect of a claim arising out of that transaction until all claims of the other creditors have been satisfied, unless the transaction was in the opinion of the trustee or of the court a proper transaction. (2) [Repealed, 2007, c. 36, s. 47] R.S., 1985, c. B-3, s. 137; 2000, c. 12, s. 15; 2005, c. 47, s. 89; 2007, c. 36, s. 47
Bankruptcy and Insolvency Act — B-3 139
Postponement of claims of silent partners 139 Where a lender advances money to a borrower engaged or about to engage in trade or business under a contract with the borrower that the lender shall receive a rate of interest varying with the profits or shall receive a share of the profits arising from carrying on the trade or business, and the borrower subsequently becomes bankrupt, the lender of the money is not entitled to recover anything in respect of the loan until the claims of all other creditors of the borrower have been satisfied. R.S., c. B-3, s. 110
Bankruptcy and Insolvency Act — B-3 140
Postponement of wage claims of officers and directors 140 Where a corporation becomes bankrupt, no officer or director thereof is entitled to have his claim preferred as provided by section 136 in respect of wages, salary, commission or compensation for work done or services rendered to the corporation in any capacity. R.S., c. B-3, s. 111
Bankruptcy and Insolvency Act — B-3 140.1
Postponement of equity claims 140.1 A creditor is not entitled to a dividend in respect of an equity claim until all claims that are not equity claims have been satisfied. 2005, c. 47, s. 90; 2007, c. 36, s. 49
Bankruptcy and Insolvency Act — B-3 141
Claims generally payable rateably 141 Subject to this Act, all claims proved in a bankruptcy shall be paid rateably. R.S., c. B-3, s. 112
Bankruptcy and Insolvency Act — B-3 142
Partners and separate properties 142 (1) Where partners become bankrupt, their joint property shall be applicable in the first instance in payment of their joint debts, and the separate property of each partner shall be applicable in the first instance in payment of his separate debts. Surplus of separate properties (2) Where there is a surplus of the separate properties of the partners, it shall be dealt with as part of the joint property. Surplus of joint properties (3) Where there is a surplus of the joint property of the partners, it shall be dealt with as part of the respective separate properties in proportion to the right and interest of each partner in the joint property. Different properties (4) Where a bankrupt owes or owed debts both individually and as a member of one or more partnerships, the claims shall rank first on the property of the individual or partnership by which the debts they represent were contracted and shall only rank on the other estate or estates after all the creditors of the other estate or estates have been paid in full. Costs out of joint and separate properties (5) Where the joint property of any bankrupt partnership is insufficient to defray any costs properly incurred, the trustee may pay such costs as cannot be paid out of the joint property out of the separate property of the bankrupts or one or more of them in such proportion as he may determine, with the consent of the inspectors of the estates out of which the payment is intended to be made, or, if the inspectors withhold or refuse their consent, with the approval of the court. R.S., c. B-3, s. 113
Bankruptcy and Insolvency Act — B-3 143
Interest from date of bankruptcy 143 Where there is a surplus after payment of the claims as provided in sections 136 to 142, it shall be applied in payment of interest from the date of the bankruptcy at the rate of five per cent per annum on all claims proved in the bankruptcy and according to their priority. R.S., c. B-3, s. 114
Bankruptcy and Insolvency Act — B-3 144
Right of bankrupt to surplus 144 The bankrupt, or the legal personal representative or heirs of a deceased bankrupt, is entitled to any surplus remaining after payment in full of the bankrupt’s creditors with interest as provided by this Act and of the costs, charges and expenses of the bankruptcy proceedings. R.S., 1985, c. B-3, s. 144; 2004, c. 25, s. 71
Bankruptcy and Insolvency Act — B-3 145
Proceeds of liability insurance policy on motor vehicles 145 Nothing in this Act affects the right afforded by provincial statute of any person who has a claim against the bankrupt for damages on account of injury to or death of any person, or injury to property, occasioned by a motor vehicle, or on account of injury to property being carried in or on a motor vehicle, to have the proceeds of any liability insurance policy applied in or toward the satisfaction of the claim. R.S., c. B-3, s. 116
Bankruptcy and Insolvency Act — B-3 146
Application of provincial law to lessors’ rights 146 Subject to priority of ranking as provided by section 136 and subject to subsection 73(4) and section 84.1, the rights of lessors are to be determined according to the law of the province in which the leased premises are situated. R.S., 1985, c. B-3, s. 146; 2004, c. 25, s. 72(E); 2007, c. 36, s. 50
Bankruptcy and Insolvency Act — B-3 147
Levy payable out of dividends for supervision 147 (1) For the purpose of defraying the expenses of the supervision by the Superintendent, there shall be payable to the Superintendent for deposit with the Receiver General a levy on all payments, except the costs referred to in subsection 70(2), made by the trustee by way of dividend or otherwise on account of the creditor’s claims, including Her Majesty in right of Canada or of a province claiming in respect of taxes or otherwise. Rate of levy (2) The levy referred to in subsection (1) shall be at a rate to be fixed by the Governor in Council and shall be charged proportionately against all payments and deducted therefrom by the trustee before payment is made. R.S., 1985, c. B-3, s. 147; 2005, c. 47, s. 91
Bankruptcy and Insolvency Act — B-3 148
Trustee to pay dividends as required 148 (1) Subject to the retention of such sums as may be necessary for the costs of administration or otherwise, the trustee shall, from time to time as required by the inspectors, declare and distribute dividends among the unsecured creditors entitled thereto. Disputed claims (2) Where the validity of any claim has not been determined, the trustee shall retain sufficient funds to provide for payment thereof in the event that the claim is admitted. No action for dividend (3) No action for a dividend lies against the trustee, but, if the trustee refuses or fails to pay any dividend after having been directed to do so by the inspectors, the court may, on the application of any creditor, order him to pay it, and also to pay personally interest thereon for the time that it is withheld and the costs of the application. R.S., c. B-3, s. 119
Bankruptcy and Insolvency Act — B-3 150
Right of creditor who has not proved claim before declaration of dividend 150 A creditor who has not proved his claim before the declaration of any dividend is entitled on proof of his claim to be paid, out of any money for the time being in the hands of the trustee, any dividend or dividends he may have failed to receive before that money is applied to the payment of any future dividend, but he is not entitled to disturb the distribution of any dividend declared before his claim was proved for the reason that he has not participated therein, except on such terms and conditions as may be ordered by the court. R.S., c. B-3, s. 121
Bankruptcy and Insolvency Act — B-3 151
Final dividend and division of estate 151 When the trustee has realized all the property of the bankrupt or all thereof that can, in the joint opinion of himself and of the inspectors, be realized without needlessly protracting the administration, and settled or determined or caused to be settled or determined the claims of all creditors to rank against the estate of the bankrupt, he shall prepare a final statement of receipts and disbursements and dividend sheet and, subject to this Act, divide the property of the bankrupt among the creditors who have proved their claims. R.S., c. B-3, s. 122
Bankruptcy and Insolvency Act — B-3 152
Statement of receipts and disbursements 152 (1) The trustee’s final statement of receipts and disbursements shall contain (a) a complete account of (i) all moneys received by the trustee out of the bankrupt’s property or otherwise, (ii) the amount of interest received by the trustee, (iii) all moneys disbursed and expenses incurred by the trustee, (iv) all moneys disbursed by the trustee for services provided by persons related to the trustee, and (v) the remuneration claimed by the trustee; and (b) full particulars of, and a description and value of, all the bankrupt’s property that has not been sold or realized together with the reason why it has not been sold or realized and the disposition made of that property. Prescribed form (2) The statement referred to in subsection (1) shall be prepared in the prescribed form or as near thereto as the circumstances of the case will permit and together with the dividend sheet shall be submitted to the inspectors for their approval. Copy to Superintendent (3) The trustee shall forward a copy of the statement and dividend sheet to the Superintendent after they have been approved by the inspectors. Superintendent may comment (4) The Superintendent may comment as he sees fit and his comments shall be placed by the trustee before the taxing officer for his consideration on the taxation of the trustee’s accounts. Notice of final dividend, etc. (5) After the Superintendent has commented on the taxation of the trustee’s accounts or advised the trustee that the Superintendent has no comments to make and the trustee’s accounts have been taxed, the trustee shall send, in the prescribed manner, to every creditor whose claim has been proved, to the registrar, to the Superintendent and to the bankrupt (a) a copy of the final statement of receipts and disbursements; (b) a copy of the dividend sheet; and (c) a notice, in the prescribed form, of the trustee’s intention to pay a final dividend after the expiry of 15 days from the sending of the notice, statement and dividend sheet and to apply to the court for his or her discharge on a subsequent date that is not less than 30 days after the payment of the dividend. Objections (6) No interested person is entitled to object to the final statement and the dividend sheet unless, prior to the expiration of the fifteen days referred to in paragraph (5)(c), that person files notice of his objection with the registrar setting out his reasons therefor and serves a copy of the notice on the trustee. R.S., 1985, c. B-3, s. 152; 1992, c. 1, s. 20, c. 27, s. 55; 2005, c. 47, s. 93
Bankruptcy and Insolvency Act — B-3 153
Dividends on joint and separate properties 153 Where joint and separate properties are being administered, the dividends may be declared together, and the expenses thereof shall be apportioned by the trustee. R.S., c. B-3, s. 124
Bankruptcy and Insolvency Act — B-3 154
Unclaimed dividends and undistributed funds 154 (1) Before proceeding to discharge, the trustee shall forward to the Superintendent for deposit, according to the directives of the Superintendent, with the Receiver General the unclaimed dividends and undistributed funds that the trustee possesses, other than those exempted by the General Rules, and shall provide a list of the names and the post office addresses, in so far as known, of the creditors entitled to the unclaimed dividends, showing the amount payable to each creditor. Receiver General to pay claims (2) The Receiver General shall, after receiving the dividends and funds and the list referred to in subsection (1), on application, pay to any creditor his proper dividend as shown on that list, and such payment has effect as if made by the trustee. R.S., 1985, c. B-3, s. 154; 1992, c. 27, s. 56
Bankruptcy and Insolvency Act — B-3 155
Summary administration 155 The following provisions apply to the summary administration of estates under this Act: (a) all proceedings under this section shall be entitled “Summary Administration”; (b) the security to be deposited by a trustee under section 16 shall not be required unless directed by the official receiver; (b.1) [Repealed, 1992, c. 1, s. 161] (c) a notice of the bankruptcy shall not be published in a local newspaper unless such publication is deemed expedient by the trustee or ordered by the court; (d) all notices, statements and other documents shall be sent in the prescribed manner; (d.1) if a first meeting of the creditors is requested by the official receiver or by creditors who have in the aggregate at least 25% in value of the proven claims, the trustee shall call the meeting, in the prescribed form and manner, and it must be held within 21 days after being called; (e) there shall be no inspectors unless the creditors decide to appoint them, and if no inspectors are appointed, the trustee, in the absence of directions from the creditors, may do all things that may ordinarily be done by the trustee with the permission of the inspectors; (f) in such circumstances as are specified in directives of the Superintendent, the estates of individuals who, because of their relationship, could reasonably be dealt with as one estate may be dealt with as one estate; (g) in such circumstances as are specified in directives of the Superintendent and with the approval of the Superintendent, the trustee may deposit all moneys relating to the summary administration of estates in a single trust account; (h) a notice of bankruptcy and (i) a notice of impending automatic discharge of the bankrupt, or (ii) an application for discharge of the bankrupt may be given in a single notice in the prescribed form; (i) notwithstanding section 152, the procedure respecting the trustee’s accounts, including the taxation thereof shall be as prescribed; (j) notwithstanding subsections 41(1), (5) and (6), the procedure for the trustee’s discharge shall be as prescribed; and (k) the court’s authorization referred to in subsection 30(4) for a sale or disposal of any of the bankrupt’s property to a person who is related to the bankrupt is required only if the creditors decide that the authorization is required. R.S., 1985, c. B-3, s. 155; 1992, c. 1, ss. 16, 161, c. 27, s. 57; 1997, c. 12, s. 92; 1999, c. 31, s. 26; 2005, c. 47, s. 94
Bankruptcy and Insolvency Act — B-3 156
Fees and disbursements of trustee 156 The trustee shall receive such fees and disbursements as may be prescribed. R.S., c. B-3, s. 127
Bankruptcy and Insolvency Act — B-3 156.1
Agreement to pay fees and disbursements 156.1 An individual bankrupt who has never before been bankrupt under the laws of Canada or of any prescribed jurisdiction and who is not required to make payments under section 68 to the estate of the bankrupt may enter into an agreement with the trustee to pay the trustee’s fees and disbursements if the total amount required to be paid under the agreement is not more than the prescribed amount and that total amount is to be paid before the expiry of the 12-month period after the bankrupt’s discharge. The agreement may be enforced after the bankrupt’s discharge. 2005, c. 47, s. 95
Bankruptcy and Insolvency Act — B-3 157
All other provisions of Act to apply 157 Except as provided in section 155, all the provisions of this Act, in so far as they are applicable, apply with such modifications as the circumstances require to summary administration. R.S., c. B-3, s. 128
Bankruptcy and Insolvency Act — B-3 157.1
Counselling 157.1 (1) The trustee (a) shall provide, or provide for, counselling for an individual bankrupt, and (b) may provide, or provide for, counselling for a person who, as specified in directives of the Superintendent, is financially associated with an individual bankrupt, in accordance with directives issued by the Superintendent pursuant to paragraph 5(4)(b), and the estate of the bankrupt shall pay the costs of the counselling, as costs of administration of the estate, according to the prescribed tariff. Idem (2) Where counselling is provided by a trustee to a debtor who is not a bankrupt, that counselling must be provided in accordance with directives issued by the Superintendent pursuant to paragraph 5(4)(b). Effect on automatic discharge (3) Subsection 168.1(1) does not apply to an individual bankrupt who has refused or neglected to receive counselling under subsection (1). 1992, c. 27, s. 58; 1997, c. 12, s. 93; 2005, c. 47, s. 96
Bankruptcy and Insolvency Act — B-3 158
 by any special order made with reference to any particular case or made on the occasion of any special application by the trustee, or any creditor or person interested; and (p) until his application for discharge has been disposed of and the administration of the estate completed, keep the trustee advised at all times of his place of residence or address. R.S., 1985, c. B-3, s. 158; 1992, c. 27, s. 59; 1997, c. 12, s. 94; 2004, c. 25, s. 73; 2017, c. 26, s. 9
Bankruptcy and Insolvency Act — B-3 159
Where bankrupt is a corporation 159 Where a bankrupt is a corporation, the officer executing the assignment, or such (a) officer of the corporation, or (b) person who has, or has had, directly or indirectly, control in fact of the corporation as the official receiver may specify, shall attend before the official receiver for examination and shall perform all of the duties imposed on a bankrupt by section 158, and, in case of failure to do so, the officer or person is punishable as though that officer or person were the bankrupt. R.S., 1985, c. B-3, s. 159; 1992, c. 27, s. 60
Bankruptcy and Insolvency Act — B-3 160
Performance of duties by imprisoned bankrupt 160 If a bankrupt is undergoing imprisonment, the court may, in order to enable the bankrupt to attend in court in bankruptcy proceedings at which the bankrupt’s personal presence is required, to attend the first meeting of creditors or to perform the duties required of the bankrupt under this Act, direct that the bankrupt be produced in the protective custody of an executing officer or other duly authorized officer at any time and place that may be designated, or it may make any other order that it deems proper and requisite in the circumstances. R.S., 1985, c. B-3, s. 160; 2004, c. 25, s. 74(E)
Bankruptcy and Insolvency Act — B-3 161
Examination of bankrupt by official receiver 161 (1) Before a bankrupt’s discharge, the official receiver shall, on the attendance of the bankrupt, examine the bankrupt under oath with respect to the bankrupt’s conduct, the causes of the bankruptcy and the disposition of the bankrupt’s property and shall put to the bankrupt the prescribed question or questions to the like effect and such other questions as the official receiver may see fit. Record of examination (2) The official receiver shall make a record of the examination and shall forward a copy of the record to the Superintendent and the trustee. Record of examination available to creditors on request (2.1) If the examination is held (a) before the first meeting of creditors, the record of the examination shall be communicated to the creditors at the meeting; or (b) after the first meeting of creditors, the record of examination shall be made available to any creditor who requests it. Examination before another official receiver (3) When the official receiver deems it expedient, the official receiver may authorize an examination to be held before any other official receiver. Official receiver to report failure to attend (4) Where a bankrupt fails to present himself for examination by the official receiver, the official receiver shall so report to the first meeting of creditors. R.S., 1985, c. B-3, s. 161; 1997, c. 12, s. 95; 2004, c. 25, s. 75(F); 2005, c. 47, s. 97
Bankruptcy and Insolvency Act — B-3 162
Inquiry by official receiver 162 (1) The official receiver may, and on the direction of the Superintendent shall, make or cause to be made any inquiry or investigation that may be deemed necessary in respect of the conduct of the bankrupt, the causes of his bankruptcy and the disposition of his property, and the official receiver shall report the findings on any such inquiry or investigation to the Superintendent, the trustee and the court. (2) [Repealed, 2005, c. 47, s. 98] Application of section 164 (3) Section 164 applies in respect of an inquiry or investigation under subsection (1). R.S., 1985, c. B-3, s. 162; 2004, c. 25, s. 76(F); 2005, c. 47, s. 98
Bankruptcy and Insolvency Act — B-3 163
Examination of bankrupt and others by trustee 163 (1) The trustee, on ordinary resolution passed by the creditors or on the written request or resolution of a majority of the inspectors, may, without an order, examine under oath before the registrar of the court or other authorized person, the bankrupt, any person reasonably thought to have knowledge of the affairs of the bankrupt or any person who is or has been an agent or a mandatary, or a clerk, a servant, an officer, a director or an employee of the bankrupt, respecting the bankrupt or the bankrupt’s dealings or property and may order any person liable to be so examined to produce any books, documents, correspondence or papers in that person’s possession or power relating in all or in part to the bankrupt or the bankrupt’s dealings or property. Examination of bankrupt, trustee and others by a creditor (2) On the application to the court by the Superintendent, any creditor or other interested person and on sufficient cause being shown, an order may be made for the examination under oath, before the registrar or other authorized person, of the trustee, the bankrupt, an inspector or a creditor, or any other person named in the order, for the purpose of investigating the administration of the estate of any bankrupt, and the court may further order any person liable to be so examined to produce any books, documents, correspondence or papers in the person’s possession or power relating in all or in part to the bankrupt, the trustee or any creditor, the costs of the examination and investigation to be in the discretion of the court. Examination to be filed (3) The evidence of any person examined under this section shall, if transcribed, be filed in the court and may be read in any proceedings before the court under this Act to which the person examined is a party. R.S., 1985, c. B-3, s. 163; 1997, c. 12, s. 96; 2004, c. 25, s. 77(E)
Bankruptcy and Insolvency Act — B-3 164
Trustee may require books and property of bankrupt to be produced 164 (1) Where a person has, or is believed or suspected to have, in his possession or power any of the property of the bankrupt, or any book, document or paper of any kind relating in whole or in part to the bankrupt, his dealings or property, or showing that he is indebted to the bankrupt, he may be required by the trustee to produce the book, document or paper for the information of the trustee, or to deliver to him any property of the bankrupt in his possession. Examination on failure to produce (2) Where a person fails to produce a book, document or paper or to deliver property as required by this section within five days after being required to do so, the trustee may, without an order, examine the person before the registrar of the court or other authorized person concerning the property, book, document or paper that the person is supposed to possess. Compelling attendance (3) Any person referred to in subsection (1) may be compelled to attend and testify, and to produce on his examination any book, document or paper that under this section he is liable to produce, in the same manner and subject to the same rules of examination, and the same consequences of neglecting to attend or refusing to disclose the matters in respect of which he may be examined, as would apply to a bankrupt. R.S., 1985, c. B-3, s. 164; 1997, c. 12, s. 97; 2004, c. 25, s. 78(F)