Canadian Insolvency System

Canada’s insolvency system provides structured processes—mainly Bankruptcy and Insolvency Act (BIA) and Companies' Creditors Arrangement Act (CCAA)—to help individuals and businesses manage unpayable debts. It aims to balance debtors’ relief with creditors’ rights, offering options like debt repayment plans, asset liquidation, or restructuring. The system is overseen by licensed trustees and courts, ensuring transparency and fairness. Overall, it facilitates orderly debt resolution, allowing financially distressed entities to either recover or conclude affairs efficiently, while maintaining confidence in the financial system.