{"id":15522,"date":"2019-07-29T16:22:51","date_gmt":"2019-07-29T20:22:51","guid":{"rendered":"https:\/\/www.bernierfournieravocats.com\/?post_type=expertise&p=15522"},"modified":"2025-07-28T13:35:32","modified_gmt":"2025-07-28T17:35:32","slug":"bankruptcy-and-restructuring","status":"publish","type":"expertise","link":"https:\/\/www.bernierfournieravocats.com\/en\/expertise\/commercial-law\/bankruptcy-and-restructuring\/","title":{"rendered":"Bankruptcy and Restructuring"},"content":{"rendered":"

The different insolvency proceedings available under Canadian law\u2014including bankruptcy, consumer proposals, and restructuring processes\u2014can often seem complex and overwhelming, both for debtors seeking relief from unmanageable debts and for creditors trying to recover money owed to them. These legal mechanisms aim to strike a balance between providing a fresh financial start to honest but unfortunate debtors and ensuring fair treatment for all creditors involved.<\/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 Bankruptcy and Insolvency Act<\/em><\/a>\u00b9, the Companies\u2019 Creditors Arrangement Act<\/em><\/a>\u00b2, the Wage Earner Protection Program Act<\/em><\/a>\u00b3, the Civil Code of Qu\u00e9bec<\/em><\/a>\u2074 as well as the Code of Civil Procedure<\/em><\/a>\u2075.<\/p>\n

Alternatives to Bankruptcy: Preventive Measures for Debtors<\/h3>\n

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

When preventive procedures are neither desirable nor sufficient, bankruptcy proceedings may be initiated on the initiative of the creditors provided that the insolvent debtor has committed at least one of the acts of bankruptcy listed in the Bankruptcy and Insolvency Act<\/em>\u2076.<\/p>\n

Bankruptcy Proceedings: Consequences for Creditors<\/h3>\n

The initiation of one of the previously mentioned procedures results in consequences for the creditor. The main consequence is the suspension of all collection proceedings<\/a> regarding a provable claim initiated by the creditor against the debtor\u2077. The secured creditors are, however, an exception to this principle seeing as they may, under certain conditions, continue to exercise their recourses against the debtor\u2078.<\/p>\n

Protecting Creditor Rights: How Bernier Fournier Can Help<\/h3>\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 guarantee 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

Preferential Treatment and Non-Releasable Debts<\/h3>\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 Bankruptcy and Insolvency Act<\/em>\u2079 sets forth consequences notably in cases of preferential treatment in order to protect creditors\u2019 rights. In addition, the discharge of the bankrupt does not release the latter from non-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

Bernier Fournier: Your Partner in Insolvency Matters<\/h3>\n

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