The Reform of Canada's Bankruptcy Act - A Legislative Process Case Study

De: Richard Stankowski

Narrado por: Virtual Voice

Bankruptcy and insolvency laws in Canada have historically been controversial. An insolvent debtor’s assets usually don’t cover all their debts. While the secured creditors usually get the biggest pieces of the pie, the preferred creditors get the second helpings (if any), and unsecured creditors are left to fight over the remaining crumbs. Because everyone wants a bigger piece of the pie, including the trustees-in-bankruptcy who administer the bankruptcy estates, there is always pressure for change. This booklet examines the reform process leading up to the milestone and historic changes in Canada’s bankruptcy system in 1992 when the Bankruptcy Act became the Bankruptcy and Insolvency Act. The text provides: a background discussion of the role of bankruptcy regulation in our economy; an overview of the multiple attempts over the years to amend the Bankruptcy Act of 1949 leading up to the major changes in 1992; and a discussion of the reasons for the lengthy period of time it took to modernize the law. This booklet will be of interest to students of “debtor-creditor” law and anyone interested in the history and politics of bankruptcy reform in Canada.