{"id":15095,"date":"2019-07-17T16:57:57","date_gmt":"2019-07-17T20:57:57","guid":{"rendered":"https:\/\/www.bernierfournieravocats.com\/?post_type=expertise&p=15095"},"modified":"2019-08-29T09:53:26","modified_gmt":"2019-08-29T13:53:26","slug":"bankruptcy-and-restructuring","status":"publish","type":"expertise","link":"https:\/\/www.bernierfournieravocats.com\/en\/expertise\/bankruptcy-and-restructuring\/","title":{"rendered":"Bankruptcy and Restructuring"},"content":{"rendered":"

The different insolvency proceedings, such as bankruptcy designed to protect an insolvent debtor, may be difficult to understand by both debtors who wish to\u00a0be discharged from their debts\u00a0<\/strong>and creditors who fear that the debt due to them will be extinguished\u00a0before being paid back in full.<\/p>\n

The Bernier Fournier team can provide you with information concerning the legislation that governs bankruptcy and insolvency matters. This legislation notably includes the\u00a0Bankruptcy and Insolvency Act<\/em>1<\/sup>, the\u00a0Companies\u2019 Creditors Arrangement Act<\/em>2<\/sup>,\u00a0<\/em>the\u00a0Wage Earner Protection Program Act<\/em>3<\/sup>, the\u00a0Civil Code of Qu\u00e9bec<\/em>4<\/sup>\u00a0as well as the\u00a0Code of Civil Procedure of Qu\u00e9bec<\/em>5<\/sup>.<\/p>\n

First of all, it is very important to know that the law provides preventive procedures for debtors to wish to avoid bankruptcy. Good examples of these are the\u00a0consumer proposal\u00a0and the\u00a0bankruptcy scheme.<\/p>\n

When preventive procedures are neither desirable nor sufficient,\u00a0bankruptcy proceedings\u00a0may be initiated on the initiative of the creditors provided that the insolvent debtor has committed at least one of the\u00a0acts of bankruptcy\u00a0<\/strong>listed in the\u00a0Bankruptcy and Insolvency Act<\/em>6<\/sup>.<\/em><\/p>\n

The initiation of one of the previously mentioned procedures results in consequences for the creditor. The main consequence is the\u00a0suspension of all collection proceedings\u00a0regarding a provable claim initiated by the creditor against the debtor7<\/sup>. The\u00a0secured creditors\u00a0are, however, an exception to this principle seeing as they may, under certain conditions, continue to exercise their recourses against the debtor8<\/sup>.<\/p>\n

The Bernier Fournier team is committed to defending creditors\u2019 rights to enable them to derogate from the suspension of procedures, whenever possible, or to start negotiations to ensure the collection of their debt by means of a\u00a0guarantee given to the creditor, i.e., a security. In the event where the suspension of procedures is unavoidable, a proof of claim must be prepared and the creditor will eventually be called on to vote at a meeting of creditors. The Bernier Fournier team has the necessary expertise to represent creditors throughout this process and see that they obtain the highest possible market value for their debt.<\/p>\n

Finally, there is a possibility that debtors will attempt to favour another creditor, for personal reasons, or simply try to escape their obligations. The\u00a0Bankruptcy and Insolvency Act<\/em>9<\/sup>\u00a0sets forth consequences notably in cases of\u00a0preferential treatment\u00a0in order to protect creditors\u2019 rights. In addition, the\u00a0discharge of the bankrupt\u00a0does not release the latter from\u00a0non-releasable debts. Thus, retaining the services of a lawyer of Bernier Fournier\u2019s team could enable you to prevent your debtor from acting against your rights and to legally require that your debts be paid back to you.<\/p>\n

We are fully aware that the bankruptcy of a debtor may be destabilizing for the creditor, and Berner Fournier\u2019s informed team can make the difference. Please do not hesitate to contact us with respect to the following:<\/p>\n