The Parliament of Canada

Parliament of Canada

The Parliament of Canada is the federal legislative branch of Canada, seated at Parliament Hill in the national capital, Ottawa. Formally, the body consists of the Canadian monarch—represented by her governor general—the Senate, and the House of Commons, each element having its own officers and...

 has exclusive jurisdiction to regulate matters relating to bankruptcy

Bankruptcy

Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....

 and insolvency

Insolvency

Insolvency means the inability to pay one's debts as they fall due. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.Business insolvency is defined in two different ways:...

, by virtue of s.91 of the Constitution Act, 1867

Constitution Act, 1867

The Constitution Act, 1867 , is a major part of Canada's Constitution. The Act created a federal dominion and defines much of the operation of the Government of Canada, including its federal structure, the House of Commons, the Senate, the justice system, and the taxation system...

. It has passed the following statutes as a result:

• The Bankruptcy and Insolvency Act ("BIA")
• The Companies' Creditors Arrangements Act ("CCAA")
• The Farm Debt Mediation Act
• The Wage Earner Protection Program Act
• The Winding-Up and Restructuring Act (which essentially applies only to financial institutions under federal jurisdiction)

In applying these statutes, provincial law has important consequences. Section 67(1)(b) of the BIA provides that "any property that as against the bankrupt is exempt from execution or seizure under any laws applicable in the province within which the property is situated and within which the bankrupt resides".

Provincial legislation under the property and civil rights

Property and civil rights

In Canadian constitutional law, section 92 of the Constitution Act, 1867 provides the provincial government with the exclusive authority to legislate on matters related to property and civil rights in the Province. Note that civil rights in this context is different from what is understood as civil...

 power of the Constitution Act, 1867

Constitution Act, 1867

The Constitution Act, 1867 , is a major part of Canada's Constitution. The Act created a federal dominion and defines much of the operation of the Government of Canada, including its federal structure, the House of Commons, the Senate, the justice system, and the taxation system...

 regulates the resolution of financial difficulties that occur before the onset of insolvency. Notable legislation is in effect for governing:

• creation of security interests (with notable caveats)
• absconding debtors
• bulk sales (in Ontario and Newfoundland only)
• fraudulent conveyance
  Fraudulent conveyance
  A fraudulent conveyance, or fraudulent transfer, is a civil cause of action. It arises in debtor/creditor relations, particularly with reference to insolvent debtors. The cause of action is typically brought by creditors or by bankruptcy trustees...
  
  s
• relief of creditors
• seizure of assets
• assignments and preferences

Administration of insolvency law

The Office of the Superintendent of Bankruptcy

Superintendent of Bankruptcy

Superintendent of Bankruptcy The role of the Superintendent of Bankruptcy is to ensure that bankruptcies and insolvencies in Canada are conducted in a fair and orderly manner.As stated on the :...

 is charged with the administration of the BIA and the CCAA. All records relating to matters under those Acts are accessible at their website. The Office also licenses trustees in bankruptcy, who are authorized to:

• administer estates of bankrupts
• handle consumer and commercial proposals in order to forestall an assignment in bankruptcy
• act as a monitor under the CCAA
• act as a receiver
  Receiver
  -Technology:* The listening device part of a telephone** The handset that sometimes contains the above device** The headset that can also contain the above device.* Audio-Visual receiver* Digital media receiver...
  
   under Part XI of the BIA, to take possession and administer property as a consequence of provisions in a security agreement or by virtue of any federal or provincial law that authorizes the appointment of a receiver or receiver-manager

See also

• Commercial insolvency in Canada
  Commercial insolvency in Canada
  Commercial insolvency in Canada has options and procedures that are distinct from those available in consumer insolvency proceedings. It is governed by the following statutes:* The Bankruptcy and Insolvency Act...
  
  
• Consumer bankruptcy in Canada
• Bankruptcy and Insolvency Act