Bankruptcy/receivership
When businesses or consumers cannot pay their debts, they may file for bankruptcy or make a proposal (a payment arrangement with their creditors for a percentage of their debts value). These are legal proceedings carried out under the Bankruptcy and Insolvency Act, and must be registered with the Office of the Superintendent of Bankruptcy.
When a secured creditor wishes to realize upon a security interest which they have against a debtor's assets, they employ the services of a third party, a receiver, for the purpose of liquidating the assets. Such activities are carried out under the authority of the Bankruptcy and Insolvency Act, as they apply to estates of insolvent persons or bankrupts.
A trustee in bankruptcy can be designated to liquidate the assets. For more information about trustee responsibilities, go to Responsibilities of the trustee in bankruptcy.
Send copies of all documentation relating to your receivership, proposal in bankruptcy, or bankruptcy to your Insolvency Intake Centres, since any of these situations could have an impact on your business accounts.