Directive No. 8R3

The Bankruptcy and Insolvency Act Forms

Jean Emonds Tower South
365 Laurier Avenue West
8^th Floor
Ottawa, Ontario
K1A 0C8

Date:November 1, 2002

To:Distribution List

Subject:Changes to Directive No. 8, Form 79 Statement of Affairs ( non-Business)

The commencement of electronic filing of documents with the Office of the Superintendent of Bankruptcy (OSB) will permit the automation of some transactions, and provide the ability to gather much vital insolvency data that has hitherto been very time-consuming to collect manually. Changes to Form 79 are required to allow our new electronic system to capture and analyse the data necessary for the automatic execution of transactions.

As indicated to attendees of the CAIRP Continuing Education seminars held across the country in May of this year, the changes, while necessary, are not substantive in nature, and did not warrant triggering the full formal Directive issuance process. We did, however, seek the views of a number of trustees regarding the changes and consider their suggestions prior to adopting the modifications.

Use of revised Form 79 (PDF format) is optional until January 6, 2003, upon which date its use becomes mandatory.

Developers of trustee software have already been made aware of the impending changes to Form 79 as part of the preparations for the OSB's electronic filing initiative.

The key changes are summarized below.

Net Realizable Assets

The acceptance of an estate as a summary administration bankruptcy depends, in part, on whether the threshold for realizable assets set out in ss. 49 (6) of the Bankruptcy and Insolvency Act (BIA) has been exceeded. Net realizable assets can only be calculated when exemptions and secured amounts can be linked to the estimated value of a specific individual asset listed on page 1 of the form.

Thus, Form 79 is revised to show secured amounts against the individual assets listed on page 1. The 'estimated net realizable dollar value' is therefore that value reported as estimated dollar value minus exemption amounts if any, direct realization costs, and secured amounts (if any).

Liability Type

Page 2 of Form 79 has been revised by the addition of a column in which to indicate, by means of a numeric code, the nature of a liability. This change will generate valuable statistical information regarding trends in debt profiles over time, information which before the advent of electronic filing would have been prohibitively costly to gather on a regular basis.

Gender

Page 3 of Form 79 has been revised to capture the gender of the bankrupt. This information will be important to track trends, and develop more accurate profiles of bankrupts. This information is important to researchers and from the perspective of sound policy-making.

Date of Birth

Page 4 of Form 79 has been revised to require four digits for the year of the bankrupt's date of birth. This overdue change was suggested by our informatics unit, in the wake of the heightened awareness of the problems posed by the year 2000.

Att.

Marc Mayrand
Superintendent of Bankruptcy

N^o 8R3

The bankruptcy and insolvency act forms

Issued: November 1, 2002

This Directive amends Directive No. 8R2, which was issued on October 3^rd, 2000.

Short Title

1. Forms Directive
   
   Purpose
   
   
2. 2. This Directive is issued pursuant to paragraphs 5(4)(c) and 5(4)(e) of the Bankruptcy and Insolvency Act (hereinafter the Act), for the purpose of prescribing the form of certain documents required by the Act and the information to be given therein.
   
   Background
   
   
3. Paragraph 5(4)(e) of the Act states that:
   1. "The Superintendent may ... issue directives prescribing the form of any document that is by this Act to be prescribed and the information to be given therein".
      
      
4. The purpose of this Directive is to prescribe amendments to Form 79, and the date of its coming into force.
   
   Summary
   
   
5. Form 79, Statement of Affairs (Non-Business bankruptcy) is withdrawn and replaced by a new Form 79.
   
   Coming into Force
   
   
6. The revised Form 79 will come into force on January 6, 2003 for all ongoing files on that date, except for situations where a previous version of the form has already been filed.
   
   
7. For the purposes of new Form 79, a numerical value of $1 is to be used to indicate an unknown asset dollar value, where a 'best estimate' cannot be provided.
   
   
8. 8. For the purposes of new Form 79, a numerical value of $0 is to be used toindicate debts of a contingent nature or unknown dollar amount, where a 'best estimate' cannot be provided.
   
   
9. Paragraph 10(e) of Directive 16R is hereby repealed.
   
   

Marc Mayrand
Superintendent of Bankruptcy