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:
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.
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
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