Canadian Bankruptcy Act

The Canadian Bankruptcy Act is a federal law that helps individuals and businesses deal with overwhelming debt. It outlines the process for declaring bankruptcy or making a consumer proposal, which is an alternative to bankruptcy that allows borrowers to negotiate a repayment plan. The Act provides protections for debtors, ensuring their essential assets are usually retained, while also defining the rights of creditors. The goal is to help people regain financial stability while fairly addressing the claims of those owed money. The Act also aims to promote responsible credit behavior and transparent financial practices.