Order Lifting Stay of Proceedings

Posted on Thursday, April 27, 2006

What is involved in obtaining an Order Lifting Stay of Proceedings. We have commenced an action against a bankrupt defendant and we would like to continue the action but have been advised that pursuant to Section 69 of the Bankruptcy Act, an Order will be required. Is there a precedent available that we could follow? Thank you for your assistance.

1 Comments:

At 10:22 AM, J. Douglas Hoyes, CA, Trustee said…

One of the central purposes of the Bankruptcy & Insolvency Act is that upon filing bankruptcy, all debts and court actions are "stayed", meaning a creditor can only take action against a bankrupt if they have the prior permission of the Bankruptcy Court.

Only a lawyer can make an application to bankruptcy court; creditors not represented by a lawyer are not permitted to bring an action before the court. Therefore, I would suggest you contact a lawyer and ask them to make the application. Generally it is very difficult to get the Court to lift a stay and allow you to pursue a bankrupt, since that is against the purpose of the Bankruptcy & Insolvency Act. You will need a strong case to get the court to agree.