Notice to Debtor

Notice to Debtor

You are hereby notified of the duties imposed upon you by the Bankruptcy and Insolvency Act, and certain other features of the Act that affect you. You are expected to read this document carefully, as a breach of your duties as set out hereunder would make you liable to prosecution.

These excerpts are not all sections of the Act. For a complete review of the Act you may visit the Office of the Superintendent of Bankruptcy’s website at www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/home

66.11 Definitions

In this Division,
"administrator" means

a trustee, or
a person appointed or designated by the Superintendent to administer consumer proposals;

("administrateur")

"consumer debtor" means an individual who is bankrupt or insolvent and whose aggregate debts, excluding any debts secured by the individual's principal residence, are not more than $250,000 or any other prescribed amount; ("débiteur consommateur")
"consumer proposal" means a proposal made under this Division. ("proposition de consommateur")

66.12

66.12(1) Consumer proposal
A consumer proposal may be made by a consumer debtor, subject to subsections (2) and 66.32(1).

66.12(1.1) Dealing with certain consumer proposals together
Two or more consumer proposals may, in such circumstances as are specified in directives of the Superintendent, be dealt with as one consumer proposal where they could reasonably be dealt with together because of the financial relationship of the consumer debtors involved.

66.12(2) Restriction
A consumer debtor who has filed a notice of intention or a proposal under Division I may not make a consumer proposal until the trustee appointed in respect of the notice of intention or proposal under Division I has been discharged.

66.12(3) To whom consumer proposal is made
A consumer proposal shall be made to the creditors generally.

66.12(4) Creditors' response
Any creditor may respond to a consumer proposal by filing with the administrator a proof of claim in the manner provided for in

sections 124 to 126, in the case of unsecured creditors; or
sections 124 to 134, in the case of secured creditors.

66.12(5) Term of consumer proposal
A consumer proposal must provide that its performance is to be completed within five years.

66.12(6) Priority of claims, fees
A consumer proposal must provide

for the payment in priority to other claims of all claims directed to be so paid in the distribution of the property of the consumer debtor;
for the payment of all prescribed fees and expenses
of the administrator on and incidental to proceedings arising out of the consumer proposal, and
of any person in respect of counselling provided pursuant to paragraph 66.13(2)(b); and
for the manner of distributing dividends.

66.13

66.13(1) Commencement of proceedings
A consumer debtor who wishes to make a consumer proposal shall commence proceedings by

obtaining the assistance of an administrator in preparing the consumer proposal; and
providing the administrator with the prescribed information on the consumer debtor's current financial situation.

66.13(2) Duties of administrator
An administrator who agrees to assist a consumer debtor shall

investigate, or cause to be investigated, the consumer debtor's property and financial affairs so as to be able to assess with reasonable accuracy the consumer debtor's financial situation and the cause of his insolvency;
provide, or provide for, counselling in accordance with directives issued by the Superintendent pursuant to paragraph 5(4)(b);
prepare a consumer proposal in the prescribed form; and
subject to subsection (3), file with the official receiver a copy of the consumer proposal, signed by the consumer debtor, and the prescribed statement of affairs.

66.13(3) Where consumer proposal not to be filed
The administrator shall not file a consumer proposal under paragraph (2)(d) if he has reason to believe that

the debtor is not eligible to make a consumer proposal; or
there has been non-compliance with anything required by this section or section 66.12.

66.13(4) Where consumer proposal wrongly filed
Where the administrator determines, after filing a consumer proposal under paragraph (2)(d), that it should not have been filed because the debtor was not eligible to make a consumer proposal, the administrator shall forthwith so inform the creditors and the official receiver, but the consumer proposal is not invalid by reason only that the debtor was not eligible to make the consumer proposal.

66.13

66.13(1) Commencement of proceedings
A consumer debtor who wishes to make a consumer proposal shall commence proceedings by

obtaining the assistance of an administrator in preparing the consumer proposal; and
providing the administrator with the prescribed information on the consumer debtor's current financial situation.

66.13(2) Duties of administrator
An administrator who agrees to assist a consumer debtor shall

investigate, or cause to be investigated, the consumer debtor's property and financial affairs so as to be able to assess with reasonable accuracy the consumer debtor's financial situation and the cause of his insolvency;
provide, or provide for, counselling in accordance with directives issued by the Superintendent pursuant to paragraph 5(4)(b);
prepare a consumer proposal in the prescribed form; and
subject to subsection (3), file with the official receiver a copy of the consumer proposal, signed by the consumer debtor, and the prescribed statement of affairs.

66.13(3) Where consumer proposal not to be filed
The administrator shall not file a consumer proposal under paragraph (2)(d) if he has reason to believe that

the debtor is not eligible to make a consumer proposal; or
there has been non-compliance with anything required by this section or section 66.12.

prepare and file with the official receiver a report in the prescribed form setting out

the results of the investigation made under paragraph 66.13(2)(a),
the administrator's opinion as to whether the consumer proposal is reasonable and fair to the consumer debtor and the creditors, and whether the consumer debtor will be able to perform it, and
[Repealed 2005, c. 47, s. 49(1).]
a list of the creditors whose claims exceed two hundred and fifty dollars; and

send to every known creditor, in the prescribed form and manner,

a copy of the consumer proposal and a copy of the statement of affairs referred to in paragraph 66.13(2)(d),
a copy of the report referred to in paragraph (a),
a form of proof of claim as prescribed, and
a statement explaining that a meeting of creditors will be called only if required under section 66.15 and that a review of the consumer proposal by a court will be made only if it is requested in accordance with subsection 66.22(1).

66.15(1) Meeting of creditors
The official receiver may, at any time within the forty-five day period following the filing of the consumer proposal, direct the administrator to call a meeting of creditors.

66.15(2) Idem
The administrator shall call a meeting of creditors

forthwith after being so directed by the official receiver under subsection (1), or
at the expiration of the forty-five day period following the filing of the consumer proposal, if at that time creditors having in the aggregate at least twenty-five per cent in value of the proven claims have so requested,

and any meeting of creditors must be held within twenty-one days after being called.

66.15(3) Notice to be sent to creditors
The administrator shall, at least ten days before a meeting called pursuant to this section, send to the consumer debtor, every known creditor and the official receiver, in the prescribed form and manner, a notice setting out

the time and place of the meeting;
a form of proxy as prescribed; and
such other information and documentation as is prescribed.

66.16

66.16(1) Chair of meeting
The official receiver, or the nominee thereof, shall be the chair of a meeting called pursuant to section 66.15 and subsection 66.37(1) and shall decide any questions or disputes arising at the meeting, and any creditor may appeal any such decision to the court.

66.16(2) Adjournment of meeting for further investigation and examination
Where the creditors by ordinary resolution at the meeting so require, the meeting shall be adjourned to such time and place as may be fixed by the chair

to enable a further appraisal and investigation of the affairs and property of the consumer debtor to be made; or
for the examination under oath of the consumer debtor or of such other person as may be believed to have knowledge of the affairs or property of the consumer debtor, and the testimony of the consumer debtor or such other person, if transcribed, shall be placed before the adjourned meeting or may be read in court on the application, if any, for the approval of the consumer proposal.

66.17

66.17(1) Creditor may indicate assent or dissent
Any creditor who has proved a claim may indicate assent to or dissent from the consumer proposal in the prescribed manner to the administrator at or prior to a meeting of creditors, or prior to the expiration of the forty-five day period following the filing of the consumer proposal.

66.17(2) Effect of assent or dissent
Unless it is rescinded, any assent or dissent received by the administrator at or before a meeting of creditors has effect as if the creditor had been present and had voted at the meeting.

66.18

66.18(1) Where consumer proposal deemed accepted
Where, at the expiration of the forty-five day period following the filing of the consumer proposal, no obligation has arisen under subsection 66.15(2) to call a meeting of creditors, the consumer proposal is deemed to be accepted by the creditors.

66.18(2) Idem
Where there is no quorum at a meeting of creditors, the consumer proposal shall be deemed to be accepted by the creditors.

66.19

66.19(1) Voting on consumer proposal
At a meeting of creditors, the creditors may by ordinary resolution, voting all as one class, accept or refuse the consumer proposal as filed or as altered at the meeting or any adjournment thereof, subject to the rights of secured creditors.

66.19(2) Related creditor
A creditor who is related to the consumer debtor may vote against but not for the acceptance of the consumer proposal.

66.19(3) Voting by administrator
The administrator, as a creditor, may not vote on the consumer proposal.

66.20 Creditors may provide for supervision of consumer debtor's affairs
The creditors, with the consent of the consumer debtor, may include such provisions or terms in the consumer proposal with respect to the supervision of the affairs of the consumer debtor as they may deem advisable

66.21 Appointment of inspectors
The creditors may appoint up to three inspectors of the estate of the consumer debtor, who shall have the powers of an inspector under this Act, subject to any extension or restriction of those powers by the terms of the consumer proposal.

66.22(1) Application to court
Where a consumer proposal is accepted or deemed accepted by the creditors, the administrator shall, if requested by the official receiver or any other interested party within fifteen days after the day of acceptance or deemed acceptance, forthwith apply to the court to have the consumer proposal reviewed.

66.22(2) Where consumer proposal deemed approved by court
Where, at the expiration of the fifteenth day after the day of acceptance or deemed acceptance of the consumer proposal by the creditors, no obligation has arisen under subsection (1) to apply to the court, the consumer proposal is deemed to be approved by the court.

66.23 Procedure for application to court
Where the administrator applies to the court pursuant to subsection 66.22(1), the administrator shall

send a notice of the hearing of the application, in the prescribed manner and at least fifteen days before the date of the hearing, to the consumer debtor, to every creditor who has proved a claim and to the official receiver;
forward a copy of the report referred to in paragraph (c) to the official receiver at least ten days before the date of the hearing; and
at least two days before the date of the hearing, file with the court a report in the prescribed form on the consumer proposal and the conduct of the consumer debtor.

66.24(1) Court to hear report of administrator, etc.
The court shall, before approving the consumer proposal, hear the report mentioned in paragraph 66.23(c) and, in addition, shall hear the official receiver, the administrator, the consumer debtor, any opposing, objecting or dissenting creditor or other interested party, and such further evidence as the court may require.

66.24(2) Refusal to approve the consumer proposal
Where the court is of the opinion that the terms of the consumer proposal are not reasonable or are not fair to the consumer debtor and the creditors, the court shall refuse to approve the consumer proposal, and the court may refuse to approve the consumer proposal whenever it is established that the consumer debtor

has committed any one of the offences mentioned in sections 198 to 200; or
was not eligible to make a consumer proposal when the consumer proposal was filed with the official receiver.

66.24(3) Proposal must comply with Act
The court shall refuse to approve a consumer proposal if it does not comply with subsections 66.12(5) and (6).

66.24(4) Power of court
Subject to subsections (1) to (3), the court may either approve or refuse to approve the consumer proposal.

66.25 Withdrawal of consumer proposal
A consumer debtor may withdraw a consumer proposal

at any time before its deemed approval by the court by virtue of subsection 66.22(2), where no court review is requested; or
where a court review is requested, at any time before its actual approval or refusal by the court pursuant to section 66.24.

66.251 Where periodic payments not provided for
Where a proposal is approved or deemed approved by the court and the terms of the proposal do not provide for the distribution of available moneys at least once every three months, the administrator shall forthwith, upon ascertaining any change in the consumer debtor's circumstances that leads the administrator to conclude, after consultation with the debtor where practicable, that such change could jeopardize the consumer debtor's ability to meet the terms of the proposal, in writing, notify the official receiver and every known creditor of the change.

66.26(1) Payments to administrator
All moneys payable under the consumer proposal shall be paid to the administrator and, after payment of all fees and expenses mentioned in paragraph 66.12(6)(b), the administrator shall distribute available moneys to the creditors in accordance with the terms of the consumer proposal.

66.26(2) Deposit of moneys
In such circumstances as are specified in directives of the Superintendent and with the approval of the Superintendent, the administrator may deposit all moneys relating to the administration of consumer proposals in a single trust account.

66.26(3) Section 147 applies
Section 147 applies, with such modifications as the circumstances require, to all distributions made to the creditors by the administrator pursuant to subsection (1).

66.27

66.27 Notifications
The administrator shall, within five days after

the refusal of a consumer proposal by the creditors,
the refusal of a consumer proposal by the court, and
the withdrawal of a consumer proposal by the consumer debtor,

so notify in the prescribed form and manner the consumer debtor, every known creditor and the official receiver.

66.28

66.28(1) Time for determining claims
The time with respect to which the claims of creditors shall be determined is the time of the filing of the consumer proposal.

66.28(2) On whom approval binding
Subject to subsection (2.1), a consumer proposal accepted, or deemed accepted, by the creditors and approved, or deemed approved, by the court is binding on creditors in respect of

all unsecured claims; and
secured claims for which proofs of claim have been filed in the manner provided for in sections 124 to 134.

66.28(2.1) When consumer debtor is released from debt
A consumer proposal accepted, or deemed accepted, by the creditors and approved, or deemed approved, by the court does not release the consumer debtor from any particular debt or liability referred to in subsection 178(1) unless the consumer proposal explicitly provides for the compromise of that debt or liability and the creditor in relation to that debt or liability voted for the acceptance of the consumer proposal.

66.28(3) Certain persons not released
The acceptance of a consumer proposal by a creditor does not release any person who would not be released under this Act by the discharge of the consumer debtor.

66.29

66.29(1) Administrator may issue certificate
If a consumer proposal is approved or deemed approved by the court, the administrator may, if the administrator believes on reasonable grounds that the debtor owns land or other valuable property, issue a certificate in respect of the proposal, and may cause the certificate to be filed in any place where a certificate of judgment, writ of seizure and sale or other like document may be filed or where a legal hypothec of judgment creditors may be registered.

66.29(2) Effect of filing certificate
A certificate filed under subsection (1) operates as a certificate of judgment, writ of execution or legal hypothec of judgment creditors until the proposal is fully performed.

66.30

66.30(1) Annulment of consumer proposal
Where default is made in the performance of any provision in a consumer proposal, or where it appears to the court

that the debtor was not eligible to make a consumer proposal when the consumer proposal was filed,
that the consumer proposal cannot continue without injustice or undue delay, or
that the approval of the court was obtained by fraud,

the court may, on application, with such notice as the court may direct to the consumer debtor and, if applicable, to the administrator and to the creditors, annul the consumer proposal.

66.30(2) Validity of things done
An order made under subsection (1) shall be made without prejudice to the validity of any sale, disposition of property or payment duly made, or anything duly done under or in pursuance of the consumer proposal, and notwithstanding the annulment of the consumer proposal, a guarantee given pursuant to the consumer proposal remains in full force and effect in accordance with its terms.

66.30(3) Annulment for offence
A consumer proposal, although accepted or approved, may be annulled by order of the court at the request of the administrator or of any creditor whenever the consumer debtor is afterwards convicted of any offence under this Act.

66.30(4) Notification of annulment
Where an order annulling the consumer proposal of a consumer debtor who is not a bankrupt has been made pursuant to this section, the administrator shall forthwith so inform the creditors and file a report thereof in the prescribed form with the official receiver.

66.30(5) Annulment effect
Where a consumer proposal made by a bankrupt is annulled,

the consumer debtor is deemed on the annulment to have made an assignment and the order annulling the proposal shall so state;
the trustee who is the administrator of the proposal shall, within five days after the order is made, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, notwithstanding section 14, affirm the appointment of the trustee or appoint another trustee in lieu of that trustee; and
the trustee shall forthwith file a report thereof in the prescribed form with the official receiver, who shall thereupon issue a certificate of assignment in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed pursuant to section 49.

66.31

66.31(1) Deemed annulment — default of payment
Unless the court has previously ordered otherwise or unless an amendment to the consumer proposal has previously been filed, a consumer proposal is deemed to be annulled on

in the case when payments under the consumer proposal are to be made monthly or more frequently, the day on which the consumer debtor is in default for an amount that is equal to or more than the amount of three payments; or
in the case when payments under the consumer proposal are to be made less frequently than monthly, the day that is three months after the day on which the consumer debtor is in default in respect of any payment.

66.31(2) Deemed annulment — amendment withdrawn or refused
If an amendment to a consumer proposal filed before the deemed annulment of the consumer proposal under subsection (1) is withdrawn or refused by the creditors or the court, the consumer proposal is deemed to be annulled at the time that the amendment is withdrawn or refused.

66.31(3) Duties of administrator in relation to deemed annulment
Without delay after a consumer proposal is deemed to be annulled, the administrator shall

file with the official receiver a report in the prescribed form in relation to the deemed annulment; and
send a notice to the creditors informing them of the deemed annulment.

66.31(4) Effects of deemed annulment — consumer proposal made by a bankrupt
If a consumer proposal made by a bankrupt is deemed to be annulled,

the consumer debtor is deemed to have made an assignment on the day on which the consumer proposal is deemed to be annulled;
the trustee who is the administrator of the consumer proposal shall, within five days after the day on which the consumer proposal is deemed to be annulled, send notice of the meeting of creditors under section 102, at which meeting the creditors may by ordinary resolution, despite section 14, affirm the appointment of the trustee or appoint another trustee in lieu of that trustee; and
the trustee shall, without delay, file with the official receiver, in the prescribed form, a report of the deemed annulment and the official receiver shall, without delay, issue a certificate of assignment, in the prescribed form, which has the same effect for the purposes of this Act as an assignment filed under section 49.

66.31(5) Validity of things done before deemed annulment
A deemed annulment of a consumer proposal does not prejudice the validity of any sale or disposition of property or payment duly made, or anything duly done under or in pursuance of the consumer proposal and, despite the deemed annulment, a guarantee given under the consumer proposal remains in full force and effect in accordance with its terms.

66.31(6) Notice of possibility of consumer proposal being automatically revived
In the case of a deemed annulment of a consumer proposal made by a person other than a bankrupt, if the administrator considers it appropriate to do so in the circumstances, he or she may, with notice to the official receiver, send to the creditors — within 30 days, or any other number of days that is prescribed, after the day on which the consumer proposal was deemed to be annulled — a notice in the prescribed form informing them that the consumer proposal will be automatically revived 60 days, or any other number of days that is prescribed, after the day on which it was deemed to be annulled unless one of them files with the administrator, in the prescribed manner, a notice of objection to the revival.

66.31(7) Automatic revival
If the notice is sent by the administrator and no notice of objection is filed during the period referred to in subsection (6), the consumer proposal is automatically revived on the expiry of that period.

66.31(8) Notice if no automatic revival
If a notice of objection is filed during the period referred to in subsection (6), the administrator is to send, without delay, to the official receiver and to each creditor a notice in the prescribed form informing them that the consumer proposal is not going to be automatically revived on the expiry of that period.

66.31(9) Administrator may apply to court to revive consumer proposal
The administrator may at any time apply to the court, with notice to the official receiver and the creditors, for an order reviving any consumer proposal of a consumer debtor who is not a bankrupt that was deemed to be annulled, and the court, if it considers it appropriate to do so in the circumstances, may make an order reviving the consumer proposal, on any terms that the court considers appropriate.

66.31(10) Duty of administrator if consumer proposal is revived
Without delay after a consumer proposal is revived, the administrator shall

file with the official receiver a report in the prescribed form in relation to the revival; and
send a notice to the creditors informing them of the revival.

66.31(11) Validity of things done before revival
The revival of a consumer proposal does not prejudice the validity of anything duly done — between the day on which the consumer proposal is deemed to be annulled and the day on which it is revived — by a creditor in the exercise of any rights revived by

66.32

66.32(1) Effects of annulment
Unless the court otherwise orders, where a consumer proposal is annulled or deemed annulled, the consumer debtor

may not make another consumer proposal, and
is not entitled to any relief provided by sections 69 to 69.2

until all claims for which proofs of claim were filed and accepted are either paid in full or are extinguished by the operation of subsection 178(2).

66.32(2) Idem
Where a consumer proposal is annulled or deemed annulled, the rights of the creditors are revived for the amount of their claims less any dividends received.

66.33

[Repealed 2005, c. 47, s. 54.]

66.34

66.34(1) Certain rights limited
If a consumer proposal has been filed in respect of a consumer debtor, no person may terminate or amend any agreement, including a security agreement, with the consumer debtor, or claim an accelerated payment, or the forfeiture of the term, under any agreement, including a security agreement, with the consumer debtor, by reason only that

the consumer debtor is insolvent, or
a consumer proposal has been filed in respect of the consumer debtor

until the consumer proposal has been withdrawn, refused by the creditors or the court, annulled or deemed annulled.

66.34(2) Idem
Where the agreement referred to in subsection (1) is a lease, subsection (1) shall be read as including the following paragraph:
(c) the consumer debtor has not paid rent in respect of a period preceding the filing of the consumer proposal.

66.34(3) Idem
Where a consumer proposal has been filed in respect of a consumer debtor, no public utility may discontinue service to that consumer debtor by reason only that

the consumer debtor is insolvent,
a consumer proposal has been filed in respect of the consumer debtor, or
the consumer debtor has not paid for services rendered, or material provided, before the filing of the consumer proposal

until the consumer proposal has been withdrawn, refused by the creditors or the court, annulled or deemed annulled.

66.34(4) Certain acts not prevented
Nothing in subsections (1) to (3) shall be construed

as prohibiting a person from requiring payments to be made in cash for goods, services, use of leased property or other valuable consideration provided after the filing of the consumer proposal; or
as requiring the further advance of money or credit

66.34(5) Provisions of section override agreement
Any provision in an agreement that has the effect of providing for, or permitting, anything that, in substance, is contrary to subsections (1) to (3) is of no force or effect.

66.34(6) Powers of court
The court may, on application by a party to an agreement or by a public utility, declare that this section does not apply, or applies only to the extent declared by the court, where the applicant satisfies the court that the operation of this section would likely cause it significant financial hardship.

66.34(7) Eligible financial contracts
Subsection (1) does not apply in respect of an eligible financial contract.

66.34(8) Permitted actions
Despite section 69.2, the following actions are permitted in respect of an eligible financial contract that is entered into before the filing of a consumer proposal and is terminated on or after that filing, but only in accordance with the provisions of that contract:
(a) the netting or setting off or compensation of obligations between the consumer debtor and the other parties to the eligible financial contract; and
(b) any dealing with financial collateral including
(i) the sale or foreclosure or, in the Province of Quebec, the surrender of financial collateral, and
(ii) the setting off or compensation of financial collateral or the application of the proceeds or value of financial collateral.

66.34(9) Net termination values
If net termination values determined in accordance with an eligible financial contract referred to in subsection (8) are owed by the consumer debtor to another party to the eligible financial contract, that other party is deemed, for the purposes of subsection 69.2(1), to be a creditor of the consumer debtor with a claim provable in bankruptcy in respect of those net termination values.

66.35

66.35(1) Assignment of wages
An assignment of existing or future wages made by a consumer debtor before the filing of a consumer proposal is of no effect in respect of wages earned after the filing of the consumer proposal.

66.35(2) Assignment of debts at request of administrator
In order to ensure compliance with the terms of a consumer proposal, the administrator may, at any time after the consumer proposal is filed, require of, and take from, the consumer debtor an assignment of any amount payable to the consumer debtor, including wages, that may become payable in the future, but no such assignment can, unless the consumer debtor agrees, be for an amount greater than is due and payable pursuant to the terms of the consumer proposal.

66.35(3) Third parties protected
An assignment made pursuant to subsection (2) is of no effect against a person owing the amount payable until a notice of the assignment is served on that person.

66.35(4) When section ceases to apply
This section ceases to apply where the consumer proposal is refused by the creditors or by the court, or is withdrawn, annulled or deemed annulled.

66.36 No dismissal, etc., of employee
No employer shall dismiss, suspend, lay off or otherwise discipline a consumer debtor on the sole ground that a consumer proposal has been filed in respect of that consumer debtor.

66.37 Amendment to consumer proposal
If an administrator files an amendment to a consumer proposal before the withdrawal, refusal, approval or deemed approval by the court of the consumer proposal, or after the approval or deemed approval by the court of the consumer proposal and before it has been fully performed or annulled or deemed annulled, the provisions of this Division apply to the consumer proposal and the amended consumer proposal, with any modifications that the circumstances require, and, for that purpose, the definition "consumer debtor" in section 66.11 is to be read as follows:
"consumer debtor" means an individual who is insolvent;

66.38

66.38(1) Certificate if consumer proposal performed
If a consumer proposal is fully performed, the administrator shall issue a certificate to that effect, in the prescribed form, to the consumer debtor and to the official receiver.

66.38(2) Effect if counselling refused
Subsection (1) does not apply in respect of a consumer debtor who has refused or neglected to receive counselling provided under paragraph 66.13(2)(b).

66.39 Administrator's accounts, discharge
The form and content of the administrator's accounts, the procedure for the preparation and taxation of those accounts and the procedure for the discharge of the administrator shall be as prescribed.

66.4

66.4(1) Act to apply
All the provisions of this Act, except Division I of this Part, in so far as they are applicable, apply, with such modifications as the circumstances require, to consumer proposals.

66.4(2) Where consumer debtor is bankrupt
Where a consumer proposal is made by a consumer debtor who is a bankrupt,

the consumer proposal must be approved by the inspectors, if any, before any further action is taken thereon;
the consumer debtor must have obtained the assistance of a trustee who shall act as administrator of the proposal in the preparation and execution thereof;
the time with respect to which the claims of creditors shall be determined is the time at which the consumer debtor became bankrupt; and
the approval or deemed approval by the court of the consumer proposal operates to annul the bankruptcy and to revest in the consumer debtor, or in such other person as the court may approve, all the right, title and interest of the trustee in the property of the consumer debtor, unless the terms of the consumer proposal otherwise provide.

178(1) Debts not released by order of discharge
An order of discharge does not release the bankrupt from

any fine, penalty, restitution order or other order similar in nature to a fine, penalty or restitution order, imposed by a court in respect of an offence, or any debt arising out of a recognizance or bail;
any award of damages by a court in civil proceedings in respect of
bodily harm intentionally inflicted, or sexual assault, or
wrongful death resulting therefrom;
any debt or liability for alimony or alimentary pension;
any debt or liability arising under a judicial decision establishing affiliation or respecting support or maintenance, or under an agreement for maintenance and support of a spouse, former spouse, former common-law partner or child living apart from the bankrupt;
any debt or liability arising out of fraud, embezzlement, misappropriation or defalcation while acting in a fiduciary capacity or, in the Province of Quebec, as a trustee or administrator of the property of others;
any debt or liability resulting from obtaining property or services by false pretences or fraudulent misrepresentation, other than a debt or liability that arises from an equity claim;
liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee, unless the creditor had notice or knowledge of the bankruptcy and failed to take reasonable action to prove his claim;
any debt or obligation in respect of a loan made under the Canada Student Loans Act, the Canada Student Financial Assistance Act or any enactment of a province that provides for loans or guarantees of loans to students where the date of bankruptcy of the bankrupt occurred
before the date on which the bankrupt ceased to be a full- or part-time student, as the case may be, under the applicable Act or enactment, or
within seven years after the date on which the bankrupt ceased to be a full- or part-time student; or
any debt for interest owed in relation to an amount referred to in any of paragraphs (a) to (l).

178(1.1) Court may order non-application of subsection (1)
At any time after five years after a bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that

the bankrupt has acted in good faith in connection with the bankrupt's liabilities under the debt; and
the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the debt.

(2) Claims Released
Subject to subsection (1), an order of discharge releases the bankrupt from all claims provable in bankruptcy.

Fontaine & Associates

Notice to Debtor

66.11 Definitions

66.12

66.13

66.13

66.16

66.17

66.18

66.19

66.27

66.28

66.29

66.30

66.31

66.32

66.33

66.34

66.35

66.38

66.4