Bankruptcy or financial insolvency is a very difficult financial situation. There are many factors which causes this. Canadian Bankruptcy and Insolvency Act (R.S., 1985, c. B-3) describes the act of bankruptcy.
According to Canada Revenue Agency there are three different ways to go to Bankruptcy. Namely:
- Voluntary assignment
- Involuntary assignment
- Deemed bankruptcy
The bankrupt person has the right to earn a living. The bankrupt person is allowed to do taxable work or continue to do taxable work, but it has to be outside of the estate, after a bankruptcy.
Office of the Superintendent of Bankruptcy (OSB), a special operating agency associated with Industry Canada. whose stated role is:
While our collective role is to protect the integrity of the bankruptcy and insolvency system, our mission is much more critical: to ensure public confidence in the marketplace.
OSB regulates and licenses trustees.