Best Restructuring & Insolvency Lawyers in Surrey

About Restructuring & Insolvency Law in Surrey, Canada

Restructuring & Insolvency law in Surrey, Canada focuses on helping individuals and businesses who are struggling to repay their debts. This area of law provides a legal framework for managing financial difficulties, making arrangements with creditors, or, as a last resort, declaring bankruptcy. The primary goal is often to protect the interests of both debtors and creditors while offering a way for the financially distressed to get a fresh start. In Surrey, which is part of British Columbia, restructuring and insolvency matters are governed by both federal and provincial laws. Legal processes in this field can involve negotiation, court proceedings, and interactions with licensed insolvency trustees.

Why You May Need a Lawyer

There are several scenarios where it is beneficial to consult a lawyer specializing in restructuring and insolvency law:

• Your business is unable to pay its debts as they come due and you are considering restructuring options.
• You are an individual facing mounting personal debts such as credit cards, loans, or tax arrears and need advice on your options.
• Court actions have been started by creditors to recover debts or to initiate bankruptcy proceedings.
• You are a creditor seeking to recover money from a debtor through legal means.
• You are a director or officer of a company at risk of insolvency and need to understand your potential liabilities.
• You want to learn about alternatives to bankruptcy, such as proposals or arrangements under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act.
• You need guidance through the insolvency process to protect your assets and understand your rights.

Local Laws Overview

Restructuring and insolvency law in Surrey falls under both federal and provincial jurisdictions. The main federal statutes governing these issues are:

• Bankruptcy and Insolvency Act (BIA): This Act provides the main legislative framework for consumer and business insolvencies in Canada, including bankruptcies, proposals, and receiverships. It covers voluntary and involuntary bankruptcy, the role of trustees, and asset liquidation.
• Companies’ Creditors Arrangement Act (CCAA): This law allows larger, financially troubled corporations to restructure their operations while being protected from creditors for a defined period.

Provincial laws in British Columbia, such as the Personal Property Security Act, also play a role in protecting secured creditors’ interests. Local courts, including the Supreme Court of British Columbia (located in New Westminster and accessible to Surrey residents), handle insolvency-related proceedings.

Additionally, Licensed Insolvency Trustees (LITs) are government-regulated professionals authorized to administer bankruptcy and proposal processes in Surrey.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring refers to reorganizing a person’s or company’s finances to avoid insolvency, often through debt arrangements or proposals. Insolvency means being unable to pay debts when they are due and may result in legal processes such as bankruptcy.

How do I file for bankruptcy in Surrey, Canada?

You must contact a Licensed Insolvency Trustee (LIT) to assess your situation. If bankruptcy is appropriate, the LIT will guide you through the paperwork and process, file the documents, and notify your creditors.

Are there alternatives to bankruptcy?

Yes, alternatives include consumer proposals for individuals, Division I proposals for businesses, and arrangements under the CCAA for larger corporations. These solutions can help reduce debt or create manageable payment plans while avoiding bankruptcy.

What happens to my assets if I declare bankruptcy?

Some assets may be exempt from seizure, such as basic household items, certain clothing, and specific amounts of equity in a vehicle or residence. Non-exempt assets can be sold by the trustee to pay creditors.

Will bankruptcy affect my credit rating?

Yes, bankruptcy will negatively impact your credit score. A first-time bankruptcy remains on your credit report for six years after your discharge in most cases.

Can I keep my house or car if I go bankrupt?

It depends on the equity you have and the specific exemptions available in British Columbia. A lawyer or LIT can help determine what you may keep based on your individual circumstances.

What happens to joint debts in bankruptcy?

If you have a joint debt and one party files for bankruptcy, the other co-signer remains responsible for the full amount of the debt.

How are businesses handled in insolvency proceedings?

Depending on the business size and situation, insolvency can involve bankruptcy, restructuring through a proposal or CCAA arrangement, or receivership. Legal advice is crucial to determine the best path forward.

What can creditors do if a debtor becomes insolvent?

Creditors can initiate legal actions to recover debts or participate in insolvency proceedings to claim a share of any available assets. They must follow specific procedures under the BIA or CCAA.

How can a lawyer help with my restructuring or insolvency issue?

A lawyer can review your situation, explain your rights and responsibilities, help negotiate with creditors, and represent you in court if necessary. They can also coordinate with Licensed Insolvency Trustees to ensure your interests are protected.

Additional Resources

If you need further information or assistance regarding restructuring and insolvency, the following resources can be helpful:

• Licensed Insolvency Trustees - Professionals authorized to administer proposals and bankruptcies
• Office of the Superintendent of Bankruptcy Canada - Oversees insolvency processes and maintains public records
• Supreme Court of British Columbia (New Westminster Registry) - Handles insolvency-related court matters for Surrey residents
• B.C. Ministry of Attorney General - Provides information about civil law and court procedures
• Credit Counselling Society - Offers non-profit financial counseling and debt management services

Next Steps

If you find yourself facing financial difficulties in Surrey and are considering options such as restructuring or insolvency, follow these steps:

1. Gather all information about your assets, debts, income, and expenses.
2. Contact a Licensed Insolvency Trustee for a free consultation to review your financial position and discuss your options.
3. If your situation is complex or involves significant legal risks, consult with a lawyer experienced in restructuring and insolvency law.
4. Act promptly, as delaying the process can limit your options and worsen your financial situation.
5. Stay informed about your rights and responsibilities throughout the process and ask questions whenever you are unsure.

Getting timely legal advice can make a significant difference in protecting your interests and finding a suitable solution for your financial challenges.