Directive No. 2R

Joint Filing

Issued:  December 19, 1997

(Supersedes Directive No. 2 previously issued on December 7, 1992)

Interpretation

1. In this Directive,

   "Act"

   means the Bankruptcy and Insolvency Act;

   "assignment"

   means an assignment filed with the official receiver;

   "consumer proposal"

   means a proposal made under Division II of Part III of the Act;

   "file"

   means an assignment in bankruptcy or a consumer proposal, as the case may be.

   Purpose

2. The purpose of this Directive is to specify the circumstances in which an assignment in bankruptcy or a consumer proposal of more than one individual may be dealt with jointly as one file.

   Background

3. Paragraph 155 (f) of the Act states:
   "in such circumstances as are specified in directives of the Superintendent, the estates of individuals who, because of their relationship, could reasonably be dealt with as one estate may be dealt with as one estate".
4. Subsection 66.12(1.1) of the Act states:
   "Two or more consumer proposals may, in such circumstances as are specified in directives of the Superintendent, be dealt with as one consumer proposal where they could reasonably be dealt with together because of the financial relationship of the consumer debtors involved."

   Policy

5. Assignments filed under the provisions relating to summary administrations may be dealt with as one estate where the debts of the individuals making the joint assignment are substantially the same and the trustee is of the opinion that it is in the best interest of the debtors and creditors.
6. Consumer proposals may be dealt with as one consumer proposal where the debts of the individuals making the joint consumer proposal are substantially the same and the administrator of consumer proposals is of the opinion that it is in the best interest of the debtors and creditors.
7. In a joint file, only one statement of receipts and disbursements shall be required. The remuneration of a trustee or administrator of consumer proposals in a joint file shall be the same as if there had been only one debtor who had filed an assignment or consumer proposal.
8. The total cost of counselling all the individuals involved in the joint file shall not exceed the total cost prescribed by the Bankruptcy and Insolvency Rules for the counselling of one individual.
9. In the case of a bankruptcy, where a conversion from a summary administration to an ordinary administration is made, the Official Receiver will separate the administration of the joint assignment.
10. Where the administration of the joint file is separated, the trustee shall apportion the joint file trust funds to each estate trust account in the same manner as if the estates had been originally filed separately.

The Superintendent of Bankruptcy

Marc Mayrand