NEWS FLASH, DECEMBER 14, 2007- It was announced today that Bill C-12 – an Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and Chapter 47 of the Statutes of Canada, 2005 has received Royal Assent.

This has caught everyone by surprise as the Senate was scheduled to hear 21 more witnesses in February, 2008. It is also surprising given that when the last bankruptcy bill was rammed through a few years ago the Senate committee expressed its disappointment in the “fast tracking” of the legislation that did not allow it to hear the many groups that were scheduled to make representations. As a result the Senate Committee received assurances that there would be the opportunity for the Senate Committee to review the legislation in early 2006 and that the legislation would not come into force until June 30, 2006 at the earliest. The Minister of Industry, David L. Emerson, confirmed this in a letter dated November 24, 2005.

Speculation is that a federal election is imminent. If Parliament is dissolved for the election before the Bill received Royal Assent, the next Parliament would have to start over from the beginning, with a new Bill. No one in Parliament wants this, because of the election advantage of having the new wage protection scheme passed into law.

This bill was passed without changes. A summary of the major changes affecting consumer bankruptcy is given here. Many of the flaws in Bill C-55 were corrected by Bill C-12, but other flaws exist which will go uncorrected.

For more information please refer to the following:
• Government of Canada News Release;
• Senate Report.