The information set out herein is of a general nature for the purpose of providing an overview of insolvency law and answering some commonly asked questions. It is not intended to, nor does it, provide legal advice with respect to specific problems. Circumstances alter cases, and you are advised to consult an insolvency lawyer for particular situations.

A Collection of Essays and Information On the Topic of Insolvency

(For answers to basic questions on this topic, see the FAQs)

Personal Bankruptcy In Canada (An Overview)
The purpose of bankruptcy proceedings is to rehabilitate the honest debtor, providing a fresh start free of most debts, and to distribute the bankrupt's assets fairly amongst the creditors. Any resident of Canada may make an assignment in bankruptcy provided there are unsecured creditors totalling $1,000 and the debtor is insolvent in that liabilities exceed assets, or is unable to meet obligations generally as they come due... more

Directors' & Officers' Liability
Not so many years ago, anyone planning on going into business was strongly advised to incorporate a company in order to take advantage of limited liability. In fact, the company's name had to end with the word "Limited". While the legal concept may still be in force, there are now so many liabilities imposed on directors that one could be forgiven for being a bit cynical about the merits of incorporation... more

Settlements v. Exempt Property
Royal Bank of Canada v. North American Life Assurance Co. and Ramgotra - A "settlement", as the term is used in s. 91 of the Bankruptcy and Insolvency Act, is a gift or transfer of property without consideration or for nominal consideration. If the settlement took place within one year of bankruptcy, it is void as against the trustee in bankruptcy... more

Deemed Trusts And Specific Charges
In a number of taxation statutes, the government authorizes, and indeed, directs that an employer or a vendor collect the tax payable by an employee or a purchaser. The moneys collected are then to be remitted to the appropriate government authority. All too frequently the collector uses the collected moneys for operating capital in its business until it is financially strong enough to remit the funds. Regrettably, many of these businesses fail and the taxes are lost... more

Employer Health Tax
The Ontario Budget on May 8, 1996 introduced one more duty for Trustees in Bankruptcy. While the authority may be somewhat questionable, Trustees are required to notify the Ontario Minister of Finance within ten days of all new bankruptcies... more

Disclaimer   |  Copyright   |   Web Site