Notice to Licensed Insolvency Trustees— Subsection 40(1) of the BIA—Disposal of Unrealizable Property

May 2, 2016

The Office of the Superintendent of Bankruptcy has published a new position paper,
Subsection 40(1) of the BIA – Disposal of Unrealizable Property, with respect to what steps, if any, a Licenced Insolvency Trustee (LIT) should take when returning unrealized property to bankrupts pursuant to subsection 40(1) of the Bankruptcy and Insolvency Act (BIA).

In keeping with the fresh start principle, it is mandatory that LITs who are returning unrealizable property to a bankrupt before they apply for their discharge pursuant to subsection 40(1) of the BIA ensure the removal of any caveats or cautions they may have registered against the title to the property.