Insolvency Act (Canada)

The Insolvency Act in Canada is a law that deals with situations when individuals or businesses can’t pay their debts. It provides a structured process for dealing with insolvency, allowing for options like bankruptcy or proposals to creditors to settle debts. The Act aims to balance the rights of debtors and creditors, enabling debtors to seek relief and have a fresh start while ensuring creditors can recover what’s owed. It outlines how assets are handled and protects consumers during financial hardships, ultimately promoting fair treatment in financial distress situations.