Insolvency Law in Canada

Tue, 07 Jul 2026 00:00:00 +0000

Introduction

Canadian insolvency law establishes the legal framework for addressing the financial distress of both individuals and corporations. The regime is bifurcated between two principal federal statutes: the Bankruptcy and Insolvency Act (BIA, RSC 1985, c B-3), which governs consumer bankruptcy, commercial insolvency, and corporate restructuring for smaller and mid-market entities, and the Companies’ Creditors Arrangement Act (CCAA, RSC 1985, c C-36), which provides a more flexible and court-supervised restructuring regime for larger corporations with claims exceeding $5 million. These statutes are supplemented by provincial personal property security legislation, the common law of receivership, and cross-border insolvency rules that adopt the UNCITRAL Model Law on Cross-Border Insolvency.

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Insolvency Law in Canada

Introduction