It has done so through two main statutes: the Bankruptcy and Insolvency Act
("Bankruptcy BIA"), under which debtors can be reorganized or liquidated and see most or all of their debts discharged, and the Companies' Creditors Arrangement Act ("CCAA") which oversees reorganization of companies with debts over $5,000,000.
(17) Debtors and Creditors Sharing the Burden: a Review of the Bankruptcy and Insolvency Act
and the Companies' Creditors Arrangement Act.
Justice Patterson of the BC Supreme Court ruled that the lottery windfall was "after-acquired" property under the Bankruptcy and Insolvency Act
, defined as "all property wherever situated of the bankrupt at the date of his bankruptcy or that may be acquired by or devolved on him before his discharge"(property acquired after bankruptcy but before discharge).
May 2002 is the legislated date in Canada for reform of the Bankruptcy and Insolvency Act
(BIA) and the Companies Creditors Arrangement Act (CCAA), the main federal Canadian insolvency statutes.
Canada's present Bankruptcy and Insolvency Act
(BIA) came into effect on July 1, 1950, with amendments in 1992 and 1997.
The amendments to the Bankruptcy and Insolvency Act which received Royal Assent on April 25, 1997, clearly accord with society's desire, lately evidenced, for a bankruptcy system which reflects more closely societal values of fiscal responsibility.
The Bankruptcy and Insolvency Act provides a debtor with two procedures for obtaining relief from overwhelming debt, namely, the bankruptcy procedure and the proposal procedure.