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Restructuring and insolvency law in London, Ontario, Canada, governs the processes and legal frameworks that individuals and businesses must follow when they face significant financial challenges. This area of law covers how debts are managed, assets distributed, and obligations resolved when someone is unable to meet their financial commitments. The main objective is to provide mechanisms for fair treatment of creditors while helping debtors find solutions, whether through restructuring debts or, if necessary, formal insolvency proceedings.
London, Ontario, being a significant commercial and economic hub in Southwestern Ontario, sees a range of personal and business insolvency cases. The law provides structured options for both restructuring debts to allow ongoing operations or, when necessary, orderly winding-up of affairs to satisfy creditor claims. Guidance from qualified professionals is often critical due to the complexity of the rules and the serious consequences involved.
You may need a lawyer dealing with restructuring and insolvency in London, Canada, for a variety of reasons. Here are some common situations:
A lawyer who specializes in restructuring and insolvency can explain your rights, help navigate complex federal and provincial laws, communicate with creditors, and represent your interests throughout the process.
Restructuring and insolvency matters in London, Ontario, are primarily governed by federal legislation, but with important implications under Ontario provincial law. Key statutes include:
London courts, such as the Ontario Superior Court of Justice, have jurisdiction over most insolvency proceedings. Licensed Insolvency Trustees (LITs), who are federally regulated, play a key role by administering bankruptcies and proposals. Local legal practices understand both the federal framework and specific regional implications such as real estate laws, employment regulations, and asset disposition in the context of Ontario law.
Bankruptcy is a legal process where a person or business is declared unable to pay their debts. Their assets are sold to pay creditors. Restructuring, on the other hand, involves negotiating new terms with creditors to avoid bankruptcy, such as through a consumer proposal or a business debt arrangement.
Most individuals or businesses that owe at least one thousand dollars and are unable to pay debts as they become due can file for bankruptcy or various restructuring options, such as proposals under the BIA or plans under the CCAA.
A Licensed Insolvency Trustee is a federally regulated professional who administers bankruptcies, proposals, and other insolvency proceedings in Canada. They provide information and oversee the legal processes.
Not necessarily. Certain assets may be exempt under Ontario law up to specific limits. A lawyer or LIT can explain what you may be able to retain based on your circumstances.
Once an insolvency process such as bankruptcy or consumer proposal begins, a legal stay of proceedings generally stops most creditor collection activities and lawsuits.
For a first-time personal bankruptcy, the process typically lasts nine to twenty-one months, depending on your income and compliance. Repeat bankruptcies or those involving offenses can last longer.
No. Individuals can enter into consumer proposals to restructure personal debts. Businesses can use various restructuring tools, including proposals under the BIA or plans under the CCAA for larger corporations.
Alternatives include negotiating directly with creditors, entering into a consumer or Division I proposal, consolidating debts, or, in the case of businesses, seeking private refinancing or formal restructuring.
In some cases, especially related to unpaid wages, source deductions, and certain tax obligations, directors can face personal liability. Legal advice is recommended to assess risks and protections.
The first step is to speak with a Licensed Insolvency Trustee or a lawyer who specializes in restructuring and insolvency. They can review your situation, explain options, and help you understand the potential consequences of each path.
If you are seeking more information or immediate assistance in the London, Ontario area, consider the following resources:
If you are experiencing financial difficulty or need advice about restructuring and insolvency in London, Ontario, here is how to proceed:
Legal professionals in London, Ontario, are experienced in both the provincial and federal aspects of restructuring and insolvency, and can help you navigate this challenging process with clarity and confidence.
