Cross-Border Insolvency In Canada

The Bankruptcy and Insolvency Act (BIA) and the Companies' Creditors Arrangement Act (CCAA) provide clear rules for legal proceedings between creditors and distressed debtors in Canada. But since insolvency law varies from one country to the next, complications can arise when either a debtor's assets or creditors are located in more than one country.

Increased international coordination after 2009 amendments

In 2009, the federal government made amendments to both the BIA and CCAA. These included provisions modeled after the United Nations' UNCITRAL Model Law on Cross-Border Insolvency. Since then, the legal framework in Canada to address foreign insolvency has become more comprehensive and more conducive to harmonizing proceedings taking place over several countries. The amendments also afford the courts greater discretion and flexibility in cross-border cases.