Statement of affairs (BIA)
A statement of affairs is the debtor’s financial statement listing assets and liabilities, the estimated value of assets, and the names, addresses and amounts owed to creditors. Under the BIA a bankrupt must submit one to the trustee in the prescribed form, verified by affidavit.
The statement of affairs sets out a debtor’s financial position in a bankruptcy or proposal. You meet it when a seller or a company you deal with becomes bankrupt or files a proposal. See how to buy assets from an insolvent company.
What the Act requires
Under section 158(d), a bankrupt must, within five days following the bankruptcy unless the official receiver extends the time, prepare and submit to the trustee a statement of affairs in the prescribed form, verified by affidavit. It shows the bankrupt’s assets and liabilities, the creditors’ names and addresses, and the securities they hold. Under section 62(1), if a proposal is made in respect of an insolvent person, the trustee files a copy of the proposal and the prescribed statement of affairs with the official receiver. The Office of the Superintendent of Bankruptcy describes it as the debtor’s own financial statement with estimated asset values.
What to check or ask
- Whether the secured creditors and their security are listed.
- Which values are estimates.
- Who verified the statement.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of Canada (Department of Justice)GovernmentBankruptcy and Insolvency Act, R.S.C. 1985, c. B-3
- 02Office of the Superintendent of Bankruptcy CanadaRegulatorDefinitions
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