LAWS 2081 ‑ Bankruptcy and Insolvency

CREDIT HOURS: 2

The course consists of an initial overview of the insolvency regime in Canada, including a review of the purposes and practical operation of the Bankruptcy and Insolvency Act ("BIA") and the Companies Creditors's Agreement Act ("CCAA"). The role of insolvency professionals as trustees, receivers and monitors is discussed. The course looks at the various types of creditors involved in the insolvency process, and reviews secured interests, both before and after bankruptcy. Deemed trust claims are discussed, as are priority claims for employees and pensions under the BIA, the rights of unpaid suppliers, Crown secured claims, and provisions of the Wage Earner Protection Program Act. The course considers what "property" is and how it is dealt with in the BIA and what property does and does not vest in trustee in bankruptcy and how it is administered. Entry into bankruptcy and the consequences and reviewed, as are the obligations of the bankrupt during bankruptcy and discharge process. Impeachable transactions, including transfers for undervalue and fraudulent conveyances and preferences are reviewed. A class deals with receivers, their appointment and their duties and obligations. Reorganization under both the BIA and CCAA is discussed, including initiation, stays of proceedings, applications for extensions, applications for early termination, the classification of creditors, the creditor approval process, and the court approval process.

Prerequisite(s): None.
Co-requisite(s): None.
Assessment Method: Closed book written examination.
Restrictions: None.