Pursuant to section 136 of the Bankruptcy and Insolvency Act, proceeds from the sale of assets (after payment to creditors holding the same asset as security) are distributed to repay creditors in the following order:
Reasonable funeral and testamentary expenses in respect of a deceased bankrupt;
Administration costs related to the bankruptcy estate such as the expenses and fees of the trustee;
A levy on dividends paid to secured, preferred and unsecured creditors;
Various types of unsecured but “preferred creditor” claims, including, certain employee claims, certain types of child and spousal support claims, some types of municipal taxes, claims by landlords, and certain claims for pre-bankruptcy execution fees and costs; and
Unsecured creditors.