The End of a Business – Corporate Bankruptcy in Canada

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Canadian Companies can face Corporate bankruptcy either voluntarily or involuntarily. Corporate bankruptcy will be the End of the Company’s Existence. Good to know! In exceptional circumstances, a bankrupt company could make a proposal in order to exit bankruptcy. Creditor approval is required for this to occur.

What Is the Bankruptcy and Insolvency Act (“BIA)

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Generally speaking, the BIA is a federal statute that governs bankruptcy, proposal and receiverships in Canada.  It provides relief to the honest, but unfortunate debtor from the crushing burden of debt so they can get a fresh start.