Detailed table of contents

• Author: Roderick J. Wood
• Profession: Faculty of Law. University of Alberta
• Pages: vii-xxiv

PREFACE xxv

CHAPTER 1:

AN INTRODUCTION TO INSOLVENCY LAW 1

1. The Nature, Purpose, and Boundaries of Insolvency Law 1

   1) The Relationship between Bankruptcy Law and Insolvency Law 1

   2) The Single Proceeding Model of Insolvency Law 2

   3) The Objectives of Insolvency Law 4

   4) The Relationship between Private Law and Insolvency Law 5

   5) The Relevance of Proprietary Rights and Personal Rights in Insolvency Law 6

   6) The Relationship between Insolvency Law and Provincial Law 7

2. The Constitutional Dimensions of Insolvency Law 8

3. The Sources of Insolvency Law 10

   1) The Common Law 10

   2) Statute Law 11

   3) Subordinate Legislation 12

   4) Superintendent’s Directives and Forms 12

4. The Various Insolvency Regimes 12

   1) Bankruptcy 13

   2) Restructuring under the CCAA 13

   3) Restructuring under the BIA 14

   4) Receiverships 14

   5) Consumer Proposals 14

   6) Orderly Payment of Debts 15

   7) Farm Debt Mediation Act 15

   8) Winding-Up and Restructuring Act 15

   9) Railway Insolvency 16

5. The Concept of Insolvency 16

   1) The Legal Significance of Insolvency 16

   2) The Definition of Insolvent Person 18

   3) The Cash Flow Tests 18

   4) The Balance Sheet Test 20

   5) The Insolvency Tests in Restructuring Proceedings 22

   Further Readings 23

   PART ONE: BANKRUPTCY LAW 25

   CHAPTER 2:

   THE FOUNDATIONS OF BANKRUPTCY LAW 27

1. Short History of Bankruptcy Law 27

   1) The Development of English Bankruptcy Law 28

   2) The Development of Canadian Bankruptcy Law 31

   3) Modern Reform Efforts in Canada 34

2. The Objectives of Bankruptcy Law 36

   1) Liquidation and Distribution of the Debtor’s Assets 36

   2) Rehabilitation of the Individual Debtor 37

   3) Enhancing Commercial Morality and Protecting the Credit System 38

3. The Fundamental Principles of Bankruptcy Law 39

   1) Bankruptcy Proceedings Are Collective 40

   2) The Debtor’s Assets Vest in the Trustee 40

   3) Proprietary Rights of Third Parties Are Unaffected 41

   4) Personal Rights of Creditors Are Converted into Rights of Proof 41

   5) A Statutory Scheme of Distribution Governs Payments to Creditors 42

   6) Discharge Releases the Debtor from Pre-Bankruptcy Claims 42

4. The Cast of Players 43

   1) The Trustee in Bankruptcy 43

   2) The Superintendent of Bankruptcy 43

   3) The Official Receiver 44

   4) The Inspectors 44

   5) The Bankruptcy Court 44

   Further Readings 45

   CHAPTER 3:

   COMMENCEMENT OF BANKRUPTCY 47

1. Eligible Persons 48

2. Consolidation of Proceedings 52

3. Involuntary Bankruptcy 53

   1) The Application for a Bankruptcy Order 53

   2) The Requirement of a Debt 55

   3) Proceedings against Securities Firms 58

   4) Acts of Bankruptcy 58

   a) Conduct that Defeats or Delays Creditors 59

   b) The Insolvency Grounds 60

   c) Exercise of Judgment Enforcement Remedies 61

   d) Ceasing to Meet Liabilities Generally 64

   e) Stale Acts of Bankruptcy 66

   5) Debtor’s Ability to Pay Debts 67

   6) Judicial Discretion 68

   7) The Bankruptcy Order 70

   8) Interim Receivers 71

4. Voluntary Bankruptcy 72

5. Automatic Bankruptcy through Failure of a Commercial Proposal 74

6. Automatic Bankruptcy through Annulment of a Consumer Proposal 74

7. Termination of Bankruptcy Proceedings 74

   1) Termination of Involuntary Bankruptcy 75

   2) Annulment of Voluntary Bankruptcy 76

   3) Effect of Annulment 77

   Further Readings 78

   CHAPTER 4:

   PROPERTY OF THE BANKRUPT 79

1. The Concept of Property in Bankruptcy Law 79

2. The Bankrupt’s Estate 81

   1) Property Vesting in the Trustee 81

   2) Non-Transferable Property 84

   3) Copyrights and Patents 86

   4) Licences and Quotas 87

   5) Rights of Action 88

   6) Set-Off 91

   7) Non-Realizable Property 94

3. Non-Divisible Property 95

   1) Trust Property 96

   a) Express Trusts 97

   b) Resulting Trusts 98

   c) Constructive Trusts 99

   d) Statutory Trusts 103

   2) Exempt Property 104

   a) Provincial and Federal Exemption Statutes 104

   b) Pre-Bankruptcy Disposition of Exempt Property 105

   c) Post-Bankruptcy Disposition of Exempt Property 106

   d) Value-Capped Exemptions 107

   e) Exceptions to Exemptions 108

   f) GST Credit Payments 109

   g) Registered Retirement Savings Plans 109

4. Post-Bankruptcy Property 110

   1) After-Acquired Property 110

   2) Surplus Income 111

5. The Rule in Ex Parte James 115

   Further Readings 117

   CHAPTER 5:

   PROPRIETARY CLAIMS OF THIRD PARTIES 118

1. Asserting Proprietary Claims against the Trustee 119

2. Secured Creditors 119

   1) The Definition of Secured Creditor 120

   2) Asserting Secured Creditor Status against the Trustee 122

   3) Non-Compliance with Validity and Perfection Requirements 123

   4) Subrogation to the Rights of a Secured Creditor 126

   5) Security Interests in Post-Bankruptcy Property 126

   6) Inversion of Priorities on Bankruptcy 128

3. Unpaid Suppliers of Goods 131

   1) Thirty-Day Goods 131

   2) Suppliers of Agricultural Products 134

4. Employee Charges 135

   1) The Wage-Earner Charge 136

   2) The Pension Contribution Charge 137

5. Crown Claims 138

6. Environmental Remediation Orders 141

7. Sales Transactions 141

8. Matrimonial Property Claims 143

   1. Claims Based on Tracing 145

10. Specific Performance 148

    Further Readings 150

    CHAPTER 6:

    PRESERVING THE BANKRUPT ESTATE 151

1. The Stay of Proceedings 152

   1) Objectives of the Stay 152

   2) Scope of the Stay 153

   3) Duration of the Stay 154

   4) Incomplete Enforcement by Creditors 155

   5) Validity of Proceedings Taken without Leave 156

   6) Lifting the Stay 157

   7) Staying Proceedings against Secured Creditors 158

   8) Staying Proceedings against Aircraft Objects 158

   9) Non-Application of the Stay to Revenue Authorities 159

2. Executory Contracts 159

   1) The General Principles Governing Executory Contracts 160

   2) Ipso Facto Clauses 163

   3) Leases of Real Property 165

   a) Temporary Occupation of the Leased Premises 166

   b) Affirmation or Disclaimer of the Lease 167

   4) Assignment of the Agreement 168

3. Abandonment of Environmentally Damaged Property 169

4. Preventing the Bankrupt from Dealing with the Estate 170

   Further Readings 172

   CHAPTER 7:

   ENHANCING THE BANKRUPT ESTATE 173

1. Impeaching Pre-Bankruptcy Transactions 173

   1) The Sources of the Impeachment Powers 174

   2) The Objectives of the Provisions 175

   3) The Nature of the Remedies 177

   4) Relationship to the Law of Restitution 179

   5) Status of the Trustee 180

   6) Exempt Property 183

   a) Conversion of Non-Exempt Property to Exempt Property 183

   b) Transfers of Exempt Assets 185

   7) Time Periods 187

   8) Arm’s Length Transactions 188

2. Preferences 189

   1) Distinction between Fraudulent Conveyances and Preferences 189

   2) Preferences under the BIA 191

   a) Transactions That Constitute a Preference 191

   b) In Favour of a Creditor 192

   c) Preferential Effect 193

   d) Intention to Prefer 194

   i) Ordinary Course Transactions 195

   ii) Transactions Necessary to Stay in Business 196

   iii) Pre-Existing Agreements to Transfer 196

   iv) Diligent Creditors 197

   e) Insolvency of the Debtor 198

   f) Within the Relevant Time Period 198

   g) Non–Arm’s Length Dealings 198

   3) Fraudulent Preferences under Provincial Law 199

   a) Standing to Bring the Action 200

   b) The Effects Rule 201

   c) The Intent Rule 201

   d) Protected Transactions 202

3. Fraudulent Conveyances 204

   1) The Fraudulent Conveyances Act 204

   a) Standing to Bring the Action 204

   b) Voluntary Transactions 205

   c) Transactions for Good Consideration 206

   d) Proof of Fraudulent Intent 206

   i) Secrecy and Untruthfulness 207

   ii) Continued Use or Benefit of the Property 207

   iii) Generality of the Conveyance 207

   iv) Anticipated Liabilities 208

   v) Inadequate Consideration 208

   vi) Related Parties 208

   2) Impeachment of Conveyances under Fraudulent Preferences Legislation 208

4. Transfer at Undervalue 209

   1) Definition of a Transfer at Undervalue 210

   2) Conspicuous Disparity in Value 210

   3) Arm’s Length Dealings 211

   4) Non–Arm’s Length Dealings 212

   5) Remedies 212

   6) Judicial Discretion...