BANKRUPTCY LAW
IN CANADA
UEH-ISB | BL-DH43ISB-3 | GROUP UNO
Duong Mai Uyen - Nguyen Quynh Nhu - Nguyen Ha Kieu Oanh
TABLE OF
CONTENT
1
What is the bankruptcy law?
Insolvent and bankrupt
2
Three ways to become a bankrupt
3
When a company goes bankrupt
4
Bankruptcy case (ALCII)
What is the
bankruptcy law?
INSOLVENT AND BANKRUPTCY
"BIA" AND "CCAA"
GOVERNED BY THE BANKRUPTCY AND INSOLVENCY ACT (BIA)
& THE COMPANIES’ CREDITORS ARRANGEMENT ACT
(CCAA)
PROVIDES
FOR
PERSONAL BANKRUPTCY
BUSINESS BANKRUPTCY
CONSUMER PROPOSAL
an offer to your creditors to repay a portion of what you
owe,
to extend the time you have to repay your debt,
or a combination of both of these that is conducted under
the BIA and administrated by a licensed insolvency trustee
(known as a consumer proposal administrator in this case).
INSOLVENT VS BANKRUPT
Three ways to become a
bankrupt
BANKRUPTCY ORDER
VOLUNTARY ASSIGNMENT
FAILED PROPOSAL
BANKRUPTCY ORDER
RESULTS WHEN ONE OR MORE CREDITORS FILE WITH THE COURT A
PETITION WHICH SUCCESSFULLY ALLEGES THAT:
(a) the debts owing to the petitioning creditor(s) is greater than or equal to $1,000;
and
(b) the debtor has committed an act of bankruptcy within six months of the filing of
the petition (s. 43)
BANKRUPTCY ORDER
1. an assignment of property to a Trustee for the benefit of creditors;
2. a fraudulent gift, delivery or transfer of property;
3. a conveyance or transfer of property (or creation of a charge) that is a fraudulent
preference;
4. the debtor, with the intent to defeat or delay his creditors, departs out of Canada
or remains out of Canada or departs from his dwelling or otherwise absents
himself;
5. permitting, for certain periods of time, execution under which the debtor's
property is taken;
BANKRUPTCY ORDER
6. an admission of his inability to pay debts;
7. assigns, removes, secretes or disposes of or attempts or is about to do same with
his property with the intent to defraud, defeat or delay his creditors or any f
them;
8. giving notice to creditors that the debtor has suspended or is about to suspend
payment of debts;
9. defaulting on a proposal; and
10. if the debtor ceases to meet liabilities generally as they become due.
VOLUNTARY ASIGNMENT
an assignment of all of his property for the general benefit of his creditors
filing an assignment with the Official Receiver
appoints the Trustee
FAILED PROPOSAL
a court sanctioned proposal to creditors.
made by an insolvent person, a receiver with respect to an insolvent person, a
liquidator, a bankrupt or a Trustee
"notice of intention to make a proposal" (“NOI”)
Once a proposal is filed with the Official Receiver, the Trustee is to call a meeting of the
creditors within 21 days
Bankruptcy case
AGRIBANK II FINANCIAL LEASING COMPANY CASE
(ALC II)
ALC II FILED A REQUEST TO THE HCMC PEOPLE’S COURT FOR DECLARING
BANKRUPTCY ON MAY 2016. IT WAS NOT UNTIL JULY 2018 THAT THE COURT
ISSUED A DECISION ON THE DECLARATION OF BANKRUPTCY FOR ALC II.
THE NUMBER OF COMPANY FAILURES IN VIETNAM INCREASED BY 9% IN
THE YEAR THROUGH TO JULY 2017
THE NUMBER OF COMPANY FAILURES IN CANADA DECREASED BY 4.7% IN
THE YEAR THROUGH TO JULY 2017
Q&A
THANKS FOR
LISTENING
GROUP UNO
Duong Mai Uyen - Nguyen Quynh Nhu - Nguyen Ha Kieu Oanh