Bankruptcy Intro for Canada

The basic premise of bankruptcy means the bankrupt is unable to pay all his debts. In order to repay his creditors he therefore surrenders his property to his creditors, however, the Trustee in Bankruptcy (TIB) will administer. The TIB divides the bankrupt’s assets amongst his creditors, he is then excused from repaying his debts (discharge).

IN Canada bankruptcy is governed by a Federal statute called the Bankruptcy and Insolvency Act (BIA).