Trust claims against a borrower’s assets are something that no secured creditor wants to be confronted with. Such claims are often unexpected because they are, for the most part, undetectable. They lurk in the shadows, out of the reach of traditional due diligence measures and PPSA searches. As a result, even the most prudent of creditors can sometimes find themselves facing these undocumented and unquantifiable claims.

A recent Alberta case1 has addressed the proposed use of a plan of arrangement under theCanada Business Corporations Act (“CBCA”) where proceedings under insolvency statutes may be more appropriate.  In Connacher Oil, Connacher Oil and Gas Limited (“Connacher”) and 9171665 Canada Ltd.

Welcome to the second article in this amazing series which looks at what you can do to try to extract money from a stubborn business debtor.

In the first article I looked at the potential benefits and detriments of issuing a County Court Claim.  This time I will take a step back and look at what you could do prior to going to Court with your completed forms and a large cheque for the ever-growing Court fee. You can read this article here.

Introduction

A recent decision of the Ontario Information and Privacy Commissioner (OPC) highlights the potentially broad application of the Personal Health Information Protection Act (PHIPA).1

In a changing economy, companies are constantly facing new challenges, and none are immune to insolvent suppliers or clients.

It is therefore crucial to be able to identify the early warning signs of a company's insolvency and to be aware of the issues that can arise when a client or a supplier becomes insolvent.

When Insolvency Looms on the Horizon

What do a car crash in Alberta, a delinquent farm mortgage in Saskatchewan and an unpaid highway toll ticket in Ontario have in common?

They all ended up in the Supreme Court of Canada.

35820     Alberta (Attorney General) v. Moloney

Constitutional law — Division of powers — Federal paramountcy — Bankruptcy and insolvency

Appeal from a judgment of the Alberta Court of Appeal (2014 ABCA 68), affirming a decision of Moen J. (2012 ABQB 644).

I am sure many of you may be aware already that as of the 1st October 2015 the Bankruptcy Limit has increased to £5,000 whilst a Winding up Order remains the same at £750.00.

The limit debtor's can apply for a Debt Relief Order has also been increased from £15,000 to £20,000.

While there are smart ways to avoid the debt collection process, sometimes you have to hire a professional. After all, you have your business to run and dealing with delinquent accounts can be draining on your resources, time and patience. That said, not every debt collection specialist is created equal and not every company will be right for your unique business. Here are a few things you should consider when selecting a partner in the process.

Do the Research

In Paul L. Schnier v. Her Majesty the Queen,[1]  the Tax Court of Canada (TCC) dismissed a motion to quash an appeal brought on the basis that the appellant did not, as an undischarged bankrupt, have the capacity, pursuant to Section 71 of the Bankruptcy and Insolvency Act, to deal with property, including the ability to bring an appeal. The Appellant believed he was required to file the appeal, but did not obtain the trustee in bankruptcy’s permission when he commenced the appeal.