Best Restructuring & Insolvency Lawyers in Markham

About Restructuring & Insolvency Law in Markham, Canada

Restructuring and insolvency law in Markham, Canada refers to the legal processes and frameworks that help businesses and individuals manage financial distress. This could mean reorganizing assets and debts through formal restructuring or addressing financial inability to pay debts by declaring insolvency. Markham, as part of Ontario, follows provincial and federal laws dealing with these issues, such as the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act. The aim of these legal processes is to provide fair and transparent solutions for all parties involved, enable recovery where possible, and ensure the orderly distribution of assets where recovery is not possible.

Why You May Need a Lawyer

Legal advice is often essential when facing situations of financial distress. You may require a lawyer in cases such as:

• Your business is unable to meet its financial obligations, and you are considering restructuring options.
• You are an individual facing overwhelming personal debt and cannot keep up with payments.
• A creditor is threatening or has taken legal action to collect debt from you or your business.
• You want to explore alternatives to bankruptcy, such as proposals to creditors or negotiations for debt repayment.
• You are a creditor who needs to understand your rights and remedies in the context of someone else's insolvency.
• You are considering purchasing the assets of an insolvent company or business in Markham.
• You want to protect assets or ensure you comply with all legal requirements during financial restructuring.
• You are unsure about how insolvency will affect contracts, leases, or ongoing business operations.

Local Laws Overview

In Markham, restructuring and insolvency matters are primarily governed by federal Canadian laws, supported by Ontario-specific regulations and procedures. Some of the key legal frameworks include:

• Bankruptcy and Insolvency Act (BIA): Sets out the rules for bankruptcy proceedings, consumer proposals, and how assets are handled.
• Companies’ Creditors Arrangement Act (CCAA): Applies to larger companies seeking to restructure and continue operations while seeking protection from creditors.
• Ontario Personal Property Security Act (PPSA): Governs security interests in personal property, which is key in asset-backed lending and insolvency scenarios.
• Ontario Courts of Justice: Local courts in Markham process insolvency cases and oversee related litigation.
• Licensed Insolvency Trustees (LITs): These are professionals authorized to administer bankruptcies and proposals under the BIA.

It is important to note that local Markham courts follow Ontario and federal procedures, but certain local practices and economic realities may affect how these laws are applied.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring is an attempt to reorganize a financially troubled business or individual's affairs to avoid insolvency, often through debt adjustment or new financing. Insolvency occurs when a person or company cannot meet their debt obligations and may need to seek legal remedies such as bankruptcy or proposals.

When should I consider filing for bankruptcy?

Filing for bankruptcy is typically considered as a last resort when other debt relief options are exhausted, and you are unable to pay your debts as they come due. Consulting a lawyer or Licensed Insolvency Trustee can help determine the best course of action.

Who can help me file for bankruptcy or restructuring in Markham?

Licensed Insolvency Trustees (LITs) in Markham are authorized to administer bankruptcy and restructuring proceedings. A lawyer specializing in insolvency law can also offer valuable guidance and represent your interests.

How long does bankruptcy stay on my credit report in Markham?

A first-time bankruptcy typically stays on your credit report for six or seven years after discharge in Ontario. Multiple bankruptcies may result in a longer period.

Can I keep any of my assets if I declare bankruptcy?

Some assets are exempt from seizure in bankruptcy, such as necessary clothing, household furniture up to a set value, and certain tools of the trade. What you can keep will depend on your specific circumstances and Ontario law.

What is a proposal to creditors?

A proposal to creditors is an alternative to bankruptcy where you offer to pay a portion of your debts or extend the time to pay. If the majority of creditors accept, and the court approves, this arrangement is binding on all unsecured creditors.

How does corporate restructuring work in Markham?

Corporate restructuring often involves court supervision under the BIA or CCAA, allowing a business to continue operating while working out arrangements with creditors, possibly reducing debt or extending payment terms.

What are the consequences of insolvency for directors and officers?

Directors and officers may face personal liability for some unpaid debts, such as certain taxes and employee wages, especially if corporate formalities were not followed or if there was wrongful conduct.

Can creditors take my house in an insolvency case?

Homeownership and equity are handled according to Ontario and federal law. In some cases, you may be able to keep your home by paying creditors the equity, but this depends on your financial situation and available exemptions.

What should I do if I receive a demand letter from a creditor?

Do not ignore the letter. Consult a restructuring and insolvency lawyer as soon as possible to review your options and protect your rights. Early legal intervention may provide alternatives to bankruptcy or litigation.

Additional Resources

• Office of the Superintendent of Bankruptcy Canada - Oversees bankruptcy and insolvency laws and maintains a public registry.
• Licensed Insolvency Trustees in Markham - Professionals licensed to administer bankruptcies and proposals.
• Ontario Ministry of the Attorney General - Provides information on court procedures and insolvency matters in Ontario.
• Canadian Association of Insolvency and Restructuring Professionals (CAIRP) - Offers educational resources and a directory of professionals.
• Local Legal Aid Ontario offices - Provides assistance to those who qualify for legal aid support.
• Community legal clinics - Offer free or low-cost legal support and guidance on insolvency issues.

Next Steps

If you are facing financial distress or considering your options in restructuring and insolvency, the following steps can help you move forward:

• Gather all relevant financial documents, including assets, liabilities, and any correspondence from creditors.
• Contact a lawyer specializing in restructuring and insolvency law in Markham or consult with a Licensed Insolvency Trustee.
• Discuss your situation openly and ask about all possible options, including informal settlements, proposals to creditors, or bankruptcy.
• Evaluate each option carefully, considering both the legal consequences and your long-term financial goals.
• Take action promptly to protect your rights and maximize your opportunities for a financial fresh start.
• Stay informed by accessing reputable resources and seeking professional advice tailored to your specific circumstances.

Remember, early intervention and professional guidance are key to navigating restructuring and insolvency successfully in Markham, Canada.