Every country has their own set of bankruptcy laws and procedures. While the definition of bankruptcy in Canada is similar to that of The United States there are still many difference between Canadian and American bankruptcy.

Canadian Bankruptcy Law

Bankruptcy law in Canada is a product of the federal government and is laid out in the Bankruptcy and Insolvency Act. The act was created as a means of protecting Canadian’s and their creditors during the bankruptcy or consumer proposal process.

The Bankruptcy and Insolvency Act of Canada is administered by The Office of the Superintendent of Bankruptcy.

The Office of the Superintendent of Bankruptcy

Canadian bankruptcy and bankruptcy law (The Bankruptcy and Insolvency Act) are upheld by by The Office of The Superintendent of Bankruptcy. The Superintendent is appointed by the federal government.

Trustee in Bankruptcy

In Canada a trustee in bankruptcy is a licensed individual (licensed under the Bankruptcy and Insolvency Act) who can administer and manage both bankruptcy and consumer proposal.

The trustee’s job is part counseling for the bankrupt and part negotiation with their creditors. The trustee works with both the bankrupt and their creditors, to ensure that the rights of both are maintained.

Changes to Bankruptcy Law in Canada

The laws that governs bankruptcy in Canada, like most law, occasionally go through changes. The most recent bankruptcy amendments happened in September 2009.

Read New Bankruptcy Laws in Canada for an update on the most recent changes to Canadian insolvency law.