The Bankruptcy and Insolvency Act (the “BIA”) is the Canadian federal statute that allows individuals and companies to get legal protection from being pursued by creditors when they are overwhelmed with debt.
When you come to us to seek advice to address a financial problem, in addition to explaining less formal debt solutions that might assist, we typically explain how two (2) procedures within the BIA are available to you to address your debt problem – either by way of filing a consumer proposal or by declaring personal bankruptcy.
In both a consumer proposal and a personal bankruptcy, the rules within the BIA, once either is in place, stays most creditors from suing you and stops legal actions that have already begun. Given it can provide such relief, the BIA is therefore a very powerful federal statute and must be administered carefully.
We as licensed trustees can provide the relief by way of administering your proposal or bankruptcy when all else does not get the results you need.
Both BIA proceedings effectively send the message to your creditors that they are unlikely going to be paid all that they are owed. However, at the same time the creditors now have someone to address their concerns- the trustee, who is licensed under the BIA to help ensure they are getting the real story, while allowing you to move forward with your financial life.
To learn more about the BIA and how it may assist you, please contact us and we will set up your free consultation.