The majority of people who declare bankruptcy are honest, but they have experienced such significant financial problems that the only way to resolve them is through the bankruptcy system. Their difficulties may result from a change in employment, income or family situation, a serious illness, or poor financial management.
About Licensed Insolvency Trustees
- What is a Licensed Insolvency Trustee?
- Find a Licensed Insolvency Trustee to obtain financial advice
- Discussing your options with a Licensed Insolvency Trustee (Video)
There are cases, however, where people abuse the system and continue to obtain and use credit knowing that they can’t repay the money they are borrowing. There are also people who use bankruptcy to get out of situations that they have created themselves through bad faith and fraud.
The Office of the Superintendent of Bankruptcy (OSB) is responsible for supervising the administration of bankruptcy files in Canada and investigating cases where offences may have been committed. It may intervene before the Court in cases where bankrupts have failed to meet their obligations or when their conduct is deemed to be inappropriate. Licensed Insolvency Trustees and creditors may also make representations to the Court in such matters.
Offences under the Bankruptcy and Insolvency Act (BIA) and the Criminal Code
- What are the offences?
- How are offences discovered?
- Can I report offences?
- What are the penalties?
- Criminal case summaries