Guide To Doing Business In Canada: Bankruptcy & Restructuring

Bankruptcy & restructuring

The economies of the United States and Canada are closely intertwined. As operations expand across the border, so too do the complexities associated with carrying on business — particularly the insolvency of a company spanning both jurisdictions. As such, understanding how to navigate the complexities of Canadian insolvency regimes is essential to successfully doing business in the country.

1. Legislation and court system

The Canadian bankruptcy and insolvency regime is divided between the federal and provincial levels of government, in accordance with the division of powers set out in Canada's Constitution. The federal Parliament has authority over bankruptcy and insolvency, while the provincial legislatures have authority over securities laws, property and civil rights — including the responsibility for determining the rights and remedies of secured creditors. As a result, the various pieces of legislation at both the federal and