Course Content
Lesson 1.1 – Purpose of the Bankruptcy and Insolvency Act (BIA)
Estimated Time: 45–60 minutes Learning Objectives Understand why the BIA exists Understand the balance between debtor relief and creditor protection Recognize insolvency as a legal remedy, not a moral failure Key Concepts The BIA is federal legislation designed to: Provide honest but unfortunate debtors a path to relief Ensure fair and orderly treatment of creditors Preserve confidence in the credit system Insolvency law is designed to create structure during financial distress Outcomes are governed by statute, not discretion
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Lesson 1.7 – CONSEQUENCES OF NON-COMPLIANCE
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Litvack Group Sales Training – Lesson 1 – Insolvency System and Trustee Authority

Outcomes Are Governed by Statute, Not Discretion

 

 

A critical principle of the BIA is that insolvency outcomes are governed by statute. This means that results depend on legal criteria, disclosure, creditor rights, and procedural compliance — not on preference, persuasion, or confidence.

Parliament determines the statute. Courts interpret it. Trustees administer it. No individual participant has authority to bend outcomes to achieve a desired result. Outcomes can change only when facts change, disclosure is incomplete, or legal objections arise.

 

 

Key Anchors:

 

 

  • Parliament sets the law

  • Courts interpret disputes

  • Trustees apply the statute

 

 

Staff must avoid language that implies flexibility or certainty where the law does not permit it.