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COVID-19 Messages to Debtors

Message to Debtors Regarding BIA Court Orders: May 7

May 7, 2020

Many Canadians who have filed for bankruptcy or filed a consumer proposal are finding it difficult to meet their obligations under the Bankruptcy and Insolvency Act (BIA) due to the economic uncertainty caused by COVID-19.

To provide much-needed relief to Canadian debtors, the Superintendent of Bankruptcy sought court orders to provide Canadians who have filed for insolvency with greater flexibility to meet their obligations. Court orders have been issued in all provinces and territories in Canada, effective April 27, 2020, and apply to active insolvency files, as well as those filed up to June 30, 2020.

Short-term relief measures include:

  • Allowing consumer proposal debtors to miss up to an additional 3 consumer proposal payments between March 13 and December 31, 2020, before the consumer proposal will be deemed annulled;
  • Extending the time for holding meetings of creditors and mediations; and
  • Extending the time for referring a matter to court with respect to subsection 170.1(3) of the BIA.

More information on the provincial and territorial court orders

These court orders will provide insolvent Canadian consumers and businesses who are struggling during this time with important relief. However, all files that are able to proceed as normal will be expected to do so. Please consult your Licensed Insolvency Trustee (LIT) for more information on how these orders apply to you.

If you do not have an LIT and are looking for help to consider your options, you can find one using the OSB’s LIT directory.

COVID-19 Messages to Debtors: March 25

March 25, 2020

During this challenging time, many Canadians may be dealing with financial challenges and having to make tough choices – maybe even thinking about filing for bankruptcy or making a proposal to their creditors. Please know that the Government of Canada is introducing economic measures to help stabilize the economy and ease the financial pressure on you. We encourage you to explore and consider these new measures.

Many creditors (such as the Canada Revenue Agency, banks, utilities providers and others) understand the impact the COVID-19 crisis is having on Canadians and are more open to flexible solutions like deferring payments or extending deadlines. You should contact your creditors directly to see what they can do for you. As always, be careful of anyone offering quick credit fixes or debt services that sound too good to be true.

You can also visit the Financial Consumer Agency of Canada website for advice on managing your finances during this challenging time.

If you think a bankruptcy or proposal is necessary, consult a Licensed Insolvency Trustee (LIT) directly. Find an LIT near you.

If you have an existing bankruptcy or proposal, please work with your LIT to discuss any potential flexibility you may need. The Office of the Superintendent of Bankruptcy is providing LITs with regular guidance to give them as much latitude as possible to address the challenges debtors may be facing.

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