The construction industry has one of the highest rates of
bankruptcies and insolvencies of any industry in Canada.
According to statistics tabulated by the Office of the
Superintendent of Bankruptcy, in 2013 in British Columbia alone,
there was a shortfall of over $36,000,000 between the reported
assets and liabilities of bankrupt and insolvent companies.
Whether it occurs during litigation, or after its conclusion, a
bankruptcy of one party to litigation can profoundly impact the
position of the remaining solvent parties.
Insolvency is a narrow and technical area of the law which is
largely governed by the Bankruptcy and Insolvency Act,
R.S.C., 1985, c. B-3 (the "BIA") and the
Companies' Creditors Arrangement Act, R.S.C., 1985, c.
C-36 (the "CCAA"). Insolvency simply describes the
situation where a debtor is unable to pay its debts. The BIA
and the CCAA provide the framework for different types of
insolvency proceedings. The details of these Acts are
