Best Restructuring & Insolvency Lawyers in Canada

Share your needs with us, get contacted by law firms.

Free. Takes 2 min.

Or refine your search by selecting a city:

Petrone & Partners
Thunder Bay, Canada

Founded in 1953
English
Petrone & Partners, established in 1953, is Thunder Bay's only full-service law firm, offering comprehensive legal services across various practice areas. The firm's team of partners and associates specializes in real estate, wills and estate planning, corporate and commercial law, family law,...
TSN Law
Nipawin, Canada

Founded in 1973
English
TSN Law, established in 1973, is a reputable law firm located in Nipawin, Saskatchewan, serving the northeast region. The firm offers a comprehensive range of legal services, including real estate transactions, family law matters, estate planning and administration, corporate and commercial law,...
Resolute Law Group
Calgary, Canada

Founded in 2017
10 people in their team
English
Resolute Law Group is a Calgary-based litigation boutique serving clients across Western Canada. Founded in 2017 by Murray A. Harris, the firm concentrates on personal injury, employment law, commercial litigation, and insurance matters. Its lawyers pair big-firm training with small-firm...
Arnot Heffernan Slobodian Law Office
Prince Albert, Canada

Founded in 2002
English
Arnot Heffernan Slobodian Law Office, located in Prince Albert, Saskatchewan, offers comprehensive legal services to individuals, businesses, and organizations. The firm's team of barristers, solicitors, mediators, and collaborative lawyers specializes in areas such as business law, estate...
Shim Law
Calgary, Canada

Founded in 2014
50 people in their team
French
English
ABOUT SHIM LAWProviding Solutions for your Legal ProblemsWe have a team of lawyers with diverse skills and backgrounds to serve you in any legal situation. Shim Law was formed in 2014 when a team of Calgary Lawyers collectively came together from all across the world to put together their...

Founded in 2024
English
KDB Law Professional Corporation, based in Stratford, Ontario, offers a modern approach to legal services, emphasizing client-focused, pragmatic solutions delivered with compassion and efficiency. The firm specializes in a comprehensive range of practice areas, including corporate law, wills and...
FC&Z Family Lawyers Calgary
Calgary, Canada

Founded in 2014
English
FC&Z Family Lawyers Calgary stands out as a leading legal practice dedicated to handling a comprehensive range of family law matters. With expertise spanning divorce, child custody, spousal support, and mediation, the firm is well equipped to guide clients through even the most complex and...
Rockies Law Corporation
Kimberley, Canada

Founded in 2004
English
Rockies Law Corporation is a full-service law firm with offices in Cranbrook, Fernie, Sparwood, Kimberley, and Invermere, British Columbia. Serving the East Kootenay region, including Cranbrook, Golden/Radium, Invermere, Kimberley, Fernie, and the Elk Valley, the firm offers a comprehensive range...

Founded in 1982
English
Velletta Pedersen Christie Lawyers, based in Canada, stands out for its diverse range of legal expertise and a steadfast commitment to delivering comprehensive legal solutions. With a strong presence in various areas of law, they offer specialized services as business attorneys, employment...
Woitzik Polsinelli LLP
Whitby, Canada

Founded in 2001
English
Woitzik Polsinelli LLP, established in 2001 by Mark Woitzik, has been a cornerstone in the Durham Region's legal landscape, particularly renowned for its proficiency in real estate law. Over the years, the firm has expanded its services to encompass wills and estates, corporate law, and more,...
AS SEEN ON

Browse restructuring & insolvency law firms by city in Canada

Refine your search by selecting a city.

About Restructuring & Insolvency Law in Canada

Restructuring and insolvency law in Canada is a highly specialized area that deals with financially distressed businesses and individuals. The goal of this legal framework is to balance the interests of debtors, creditors, and other stakeholders. Canadian law offers mechanisms for distressed companies and individuals to reorganize their affairs, address outstanding debts, and continue operations or, if necessary, liquidate assets in an orderly manner. The process is governed by several federal and provincial statutes, with the intent to promote fairness, maximize asset value, and provide fresh starts where possible.

Why You May Need a Lawyer

If you or your business faces financial difficulties, a restructuring and insolvency lawyer can provide crucial guidance. Here are some common situations where legal help is essential:

  • Your business is unable to pay its debts as they become due
  • You are a creditor seeking to recover funds from a financially distressed debtor
  • You require assistance navigating bankruptcy proceedings
  • You want to explore restructuring options to avoid bankruptcy
  • You face legal actions or threats from creditors
  • Your business needs to negotiate new terms with lenders or vendors
  • You are personally liable on business debts or guarantees
  • You want to maximize recovery in a liquidation scenario

A qualified lawyer can assess your unique situation, identify the best route forward, and protect your legal and financial interests throughout the process.

Local Laws Overview

In Canada, restructuring and insolvency are primarily governed by federal laws, with the most significant statutes being the Bankruptcy and Insolvency Act (BIA) and the Companies’ Creditors Arrangement Act (CCAA). The BIA provides procedures for both personal and corporate bankruptcies and proposals. The CCAA allows larger companies undergoing severe financial distress to restructure their debts and continue operations. Provincial laws may also apply in certain aspects, especially regarding property rights and civil procedures.

Key aspects include:

  • Bankruptcy: A legal process where a debtor's assets are sold to pay creditors. Individuals and companies can file for bankruptcy under the BIA.
  • Proposals: Under the BIA, debtors can make proposals to restructure debt instead of declaring bankruptcy. If accepted by creditors and approved by the court, proposals allow debtors to pay a portion of what is owed while continuing operations or regaining personal solvency.
  • Receiverships: Creditors may appoint a receiver to take control of a debtor's assets, usually when secured debt is involved.
  • CCAA Proceedings: For larger companies with significant debt, the CCAA allows court-supervised restructuring with broad powers to negotiate terms with creditors.
  • Consumer Proposals: Individuals can use this less drastic alternative to bankruptcy to settle debts over time, usually resulting in greater returns to creditors and often less impact on credit ratings.

Bankruptcy and restructuring processes are court-supervised, involve strict timelines, and must comply with detailed requirements. Legal advice is crucial to navigate these complex rules efficiently.

Frequently Asked Questions

What is the difference between bankruptcy and restructuring in Canada?

Bankruptcy in Canada is a legal process that involves the liquidation of assets to repay creditors, potentially leading to the end of a business or impacting an individual's financial standing for several years. Restructuring aims to help reorganize debts, allowing the individual or company to continue operating while paying back creditors under new terms.

Who oversees insolvency and restructuring cases in Canada?

Most cases are overseen by Licensed Insolvency Trustees (LITs) appointed by the Office of the Superintendent of Bankruptcy (OSB), with court involvement in larger or more complex matters.

Can individuals avoid bankruptcy through restructuring?

Yes, individuals can file a consumer proposal under the BIA to restructure their debts by offering to pay a portion over a set period, avoiding the more serious consequences of bankruptcy.

How does a company decide between CCAA and BIA restructuring?

Generally, companies with debts exceeding $5 million choose the CCAA due to its flexibility and suitability for complex restructurings, while smaller businesses use the BIA procedures.

Do all creditors need to agree to a restructuring proposal?

A majority of creditors, representing at least two thirds in value and over half in number, must approve a proposal. Once approved by the court, all creditors are bound by the terms.

What happens to employees during insolvency proceedings?

Employees are considered preferential creditors for certain unpaid wages and vacation pay, but outcomes may depend on the available assets and restructuring or liquidation plan.

Will bankruptcy erase all my debts?

Not all debts can be eliminated in bankruptcy. Exceptions include child support, alimony, court fines, and some student loans. A lawyer can help clarify which debts remain.

How long does bankruptcy last for individuals?

A first-time bankruptcy generally lasts nine months, but it could be longer if you have surplus income or prior bankruptcies.

Can I keep my assets if I file for bankruptcy?

Certain assets are exempt from seizure, depending on provincial laws. These may include basic household goods, some personal effects, and a portion of your home equity.

Will restructuring or bankruptcy affect my credit rating?

Both bankruptcy and restructuring proceedings (including consumer proposals) will significantly impact your credit rating. However, consumer proposals often result in a more favourable outcome than bankruptcy.

Additional Resources

Several reputable organizations and government agencies provide information and assistance regarding restructuring and insolvency in Canada:

  • Office of the Superintendent of Bankruptcy (OSB) - administers insolvency cases and regulates Licensed Insolvency Trustees
  • Licensed Insolvency Trustees (LITs) - professionals licensed to administer bankruptcy and proposals
  • Canadian Association of Insolvency and Restructuring Professionals (CAIRP) - provides education and resources on insolvency issues
  • Provincial legal aid clinics - may offer advice for individuals facing insolvency with limited financial means
  • The Department of Justice Canada - provides information on federal bankruptcy and insolvency laws

Next Steps

If you or your business are facing financial distress, the following steps can help you navigate the legal aspects of restructuring and insolvency:

  • Gather all relevant financial documents, including statements, contracts, and outstanding balances
  • Seek advice from a qualified restructuring and insolvency lawyer to explore your full range of options
  • Contact a Licensed Insolvency Trustee to understand available procedures and potential outcomes
  • Consider whether a restructuring plan, a consumer proposal, or bankruptcy is best for your situation
  • Act promptly to prevent further legal complications and protect your interests

Obtaining early legal advice is key to making informed decisions and maximizing the opportunities for resolution, whether through restructuring, proposal, or bankruptcy proceedings.

Lawzana helps you find the best lawyers and law firms in Canada through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Canada - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.