There are two statutes which set out the law of bankruptcy and insolvency law in Canada. They are the Bankruptcy and Insolvency Act (“BIA”) and the Companies Creditors Arrangement Act (“CCAA”).
The BIA and the CCAA are very different in approach. The BIA contains 275 sections and is intended to be a complete code for bankruptcies. The CCAA, on the other hand, which deals with corporate restructuring, contains only 22 sections. It allows for flexibility and requires decisions of the court to “fill in the gaps”. Whereas much of the law dealing with bankruptcies is within the BIA itself, most of the law dealing with the CCAA is found in judgments.
To find out more, download the full guide “An Overview of Bankruptcy and Insolvency Law in Canada”
For more information, please contact Hamilton Duncan Partner, Robert Rogers.