Bankruptcy   Search site              Home   line   About us   line   Contact us   line   Ask an expert   line   Forms   line   Corporate recovery      


Thank you for making a difficult time in our life easier to deal with.

- Grant Thornton client

» Read success stories

Thank you for making a difficult time in our life easier to deal with.

- Peter B

» Read success stories


Legal stuff — bankruptcy laws in Nova Scotia

What legal aspects should I understand regarding bankruptcy or a proposal in Nova Scotia?

The bankruptcy law in Canada requires that any individual considering bankruptcy or a proposal must review certain sections of the Bankruptcy and Insolvency Act. Those excerpts are provided below. The Trustee or administrators at Grant Thornton would be happy to discuss or explain this information further with you.

Excerpts from the Bankruptcy and Insolvency Act:

Do I need a lawyer?

In the vast majority of personal insolvencies in Canada, lawyers are not used.

A Trustee in bankruptcy is licensed by the federal government to administer specific types of insolvency procedures under Canadian law. Most Trustees are chartered accountants.

What is bankruptcy fraud?

Bankruptcy fraud occurs when people abuse the system and continue to obtain and use credit knowing that they can't repay the money they are borrowing. There are also people who use bankruptcy to get out of situations that they have created themselves through bad faith and fraud.

The Office of the Superintendent of Bankruptcy (OSB) is responsible for supervising the administration of bankruptcy files in Canada and investigating cases where offences may have been committed. It may intervene before the Court in cases where bankrupts have failed to meet their obligations or when their conduct is deemed to be inappropriate. Trustees in bankruptcy and creditors may also make representations to the Court in such matters.

The most common offences committed under the BIA and the Criminal Code are when the bankrupt:

  • Fraudulently disposes of property before or after the bankruptcy

  • Makes false entries in a statement of account or hides, destroys or falsifies a document related to his/her property or affairs

  • Obtains credit or any other good through false representations

  • Conceals or fraudulently removes property, or conceals claims or debts

  • Obtains credit or engages in trade without informing the people involved that he/she is bankrupt (a person who is bankrupt and borrows $1,000 or more must inform the lender that he/she is bankrupt)

  • Refuses to respond fully and truthfully to questions posed during an examination held in accordance with the BIA

You can learn more in the Bankruptcy & Insolvency Act (sections 198 to 201) and the Criminal Code.


© 2017 Grant Thornton Limited, Licensed Insolvency Trustees. All rights reserved.

back to Bankruptcy home

Confidential callback from a bankruptcy professional

We can call you weekdays from 8:30am to 5:00pm

Please call me

As soon as possible
Today at
Next business day at

My Phone # 


Ask for  


back to Bankruptcy home

Make an appointment

You can meet with us during our office hours, weekdays from 8:30am to 5:00pm


- -


Preferred Date (dd/mm/yy)




back to Bankruptcy Nova Scotia

Ask a question



* Email  

* Question