Insolvency law of Canada

The Parliament of Canada has exclusive jurisdiction to regulate matters relating to bankruptcy and insolvency, by virtue of Section 91(2) of the Constitution Act, 1867. 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 power of the Constitution Act, 1867 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 only)
• fraudulent conveyances
• relief of creditors
• seizure of assets
• assignments and preferences