Frequently Asked Questions
- Bankruptcy Offences
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<p>Sections 198 and 199 of the Bankruptcy and Insolvency Act outline the following offences and consequences.</p>
<h3>Bankruptcy offences</h3> <p>Section 198</p>
<ol> <li>Any bankrupt who <ol style="list-style-type: lower-alpha;"> <li>makes any fraudulent disposition of the bankrupt’s property before or after the date of the initial bankruptcy event,</li>
<li>refuses or neglects to answer fully and truthfully all proper questions put to the bankrupt at any examination held pursuant to this Act,</li>
<li>makes a false entry or knowingly makes a material omission in a statement or accounting,</li>
<li>after or within one year immediately preceding the date of the initial bankruptcy event, conceals, destroys, mutilates, falsifies, makes an omission in or disposes of, or is privy to the concealment, destruction, mutilation, falsification, omission from or disposition of, a book or document affecting or relating to the bankrupt’s property or affairs, unless the bankrupt had no intent to conceal the state of the bankrupt’s affairs,</li>
<li>after or within one year immediately preceding the date of initial bankruptcy event, obtains any credit or any property by false representations made by the bankrupt or made by any other person to the bankrupt’s knowledge,</li>
<li>after or within one year immediately preceding the date of the initial bankruptcy event, fraudulently conceals or removes any property of a value of fifty dollars or more or any debt due to or from the bankrupt, or</li>
<li>after or within one year immediately preceding the date of the initial bankruptcy event, hypothecates, pawns, pledges or disposes of any property that the bankrupt has obtained on credit and has not paid for, unless in the case of a trader the hypothecation, pawning, pledging or disposing is in the ordinary way of trade and unless the bankrupt had no intent to defraud, is guilty of an offence and is liable, on summary conviction, to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year or to both, or on conviction on indictment, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding three years, or to both.</li> </ol></li>
<li>A bankrupt who, without reasonable cause, fails to comply with an order of the court made under section 68 or to do any of the things required of the bankrupt under section 158 is guilty of an offence an is liable
<ol style="list-style-type: lower-alpha;"> <li>on summary conviction, to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year, or to both; or</li>
<li>on conviction on indictment, to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding three years, or to both.</li> </ol></li></ol>
<h3>Failure to disclose fact of being undischarged</h3> <p>Section 199<br /> An undischarged bankrupt who</p>
<ol style="list-style-type: lower-alpha;"> <li>engages in any trade or business without disclosing to all persons with whom the undischarged bankrupt enters into any business transaction that the undischarged bankrupt is an undischarged bankrupt, or</li> <li>obtains credit to a total of one thousand dollars or more from any person or persons without informing such persons that the undischarged bankrupt is an undischarged bankrupt, is guilty of an offence punishable on summary conviction and is liable to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding one year, or to both.</li> </ol>
<p>E. & O. E.</p>
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All of the information on this website is provided as general information to those seeking general answers to their questions.
This information should not be construed as professional advice.
Every insolvency situation is different and the outcome of each will very depending on its unique circumstances.
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