Insolvency Rules: Digital updates and fee changes

Summary#

This is a proposed package of changes, published in the Canada Gazette on November 29, 2025, that would update the Bankruptcy and Insolvency General Rules and the Companies’ Creditors Arrangement Regulations. The proposal from the Office of the Superintendent of Bankruptcy (OSB) aims to let more business and consumer insolvency tasks be done electronically, raise the cut-offs that let people use simpler insolvency processes, and increase the maximum fees paid to trustees. The government’s analysis estimates a net present value of $277 million over 20 years from the proposal.

What it does#

• Digital steps and simpler paperwork

  • Allows notices and many court or trustee documents to be sent by electronic transmission (for example, email).
  • Lets trustees keep estate books, records and documents electronically.
  • Clarifies that some electronically filed documents are not tied to “business hours.”
  • Removes the rule that certain bankruptcy applications need a court seal.
  • Lets CCAA documents be signed with digital signatures.

• Timing and records for CCAA cases

  • Requires the monitor’s initial information (Form 1) to be filed within two business days.
  • Requires the post‑monitor summary (Form 3) within five business days.
  • Keeps the public record of CCAA proceedings for 10 years after the monitor is discharged.

• Higher eligibility limits for simpler, faster proceedings

  • Raises the asset limit for a summary administration bankruptcy from $15,000 to $20,000.
  • Raises the debt limit for consumer proposals from $250,000 to $325,000.
  • Both limits would be adjusted each year for inflation starting April 1, 2027, with rounding rules.

• Changes to trustee (LIT) fees and timing of payment

  • Summary administration bankruptcies: trustees could claim
    • 100% on the first $1,700 of receipts, and 45% on the portion above $1,700 (up to the asset threshold).
    • Two advance withdrawals of $850 each (one at notice of bankruptcy and one 90 days later). The advance cannot exceed 75% of the estate bank account balance.
    • A lump sum for administrative disbursements of $140 (indexed).
  • Consumer proposals:
    • Two payments of $850 each (up from $750), indexed.
  • Counselling fees:
    • Individual counselling $120 per session (up from $85).
    • Group counselling $35 per person per session (up from $25).
  • The tariff amounts would be maximums (not compulsory flat fees) and many amounts would be indexed annually to inflation.
  • The proposal says most changes would come into force when registered, but the fee/tariff and threshold changes would come into force one year after registration (to allow software updates and planning).

Who's affected#

• Licensed Insolvency Trustees (LITs) — biggest direct effect. They would be able to use electronic records and could collect higher maximum fees and earlier advances.
• People who owe money (consumer debtors) — more people would be eligible for the simpler summary administration bankruptcy or a consumer proposal because of higher thresholds.
• Creditors (including some small businesses) — could get smaller recoveries from insolvent estates because more goes to trustee fees.
• The Office of the Superintendent of Bankruptcy (OSB), courts, and software providers — need to update systems and procedures to handle new electronic filing, fee rules and reporting.
• People in remote areas — may benefit from electronic communications (the proposal notes this helps remote residents generally, including Indigenous people, but the benefit is linked to location rather than status).
• If the source is unclear about any specific subgroup effect, the proposal says some effects (for example exact impact on individual small creditors) are estimates and depend on future trends.

Why it matters#

• Makes insolvency processes more digital and faster. That can save time and printing/courier costs for trustees, courts and creditors.
• Lets more low‑value cases use simpler, cheaper proceedings. That can reduce costs for people with smaller estates and for LITs working in smaller or remote communities.
• Pays trustees more (the analysis projects increased trustee remuneration of $680 million in present value over 20 years). That is intended to keep enough trustees in the market and improve access to services.
• Reduces what creditors recover from insolvent estates (estimated present‑value reduction $744 million). That’s the main trade‑off: trustees and some debtors gain convenience and better service, while creditors (including some small businesses) may receive smaller payments.
• Overall monetized totals in the government’s analysis: total benefits $1.040 billion, total costs $763 million, net present value $277 million over 20 years. Those estimates depend on assumptions about inflation and how many people choose proposals versus bankruptcy.
• This is a proposal (not final law). The Canada Gazette notice invited comments (the document sets a 30‑day comment period after publication). Implementation timing would vary: most changes on registration, but fee and threshold changes delayed one year to let systems adapt.