Example of Compliant Agreement under Section 156.1 of the BIA and Rule 58.1

In the matter of the bankruptcy of: space to insert bankrupt's name

OSB Estate No.:space to insert OSB Estate number

Trustee File No.:space to insert Trustee File number

The trustee and the bankrupt wish to avail themselves of the provisions contained in section 156.1 of the Bankruptcy and Insolvency Act (BIA) and Rule 58.1 of the Bankruptcy and Insolvency General Rules (Rules).

The parties assert and agree that:

  1. The bankrupt space to insert bankrupt name [bankrupt name] filed an assignment in bankruptcy on space to insert date [date] and space to insert Trustee name [trustee name] was named Trustee as appears in the Certificate of Appointment;
  2. The bankrupt has never before been bankrupt under the laws of Canada or of any prescribed jurisdiction;
  3. The bankrupt is not required to make surplus income payments under section 68 of the BIA to the estate;
  4. The bankrupt agrees to pay to the Trustee the amount of space to insert amount to be paid to the trustee, totaling no more than the prescribed amount of $1,800, including GST/HST;
  5. Subject to section 136 of the BIA, money from the estate of the bankrupt shall be applied to satisfy the amount to be paid under the agreement;
  6. The bankrupt agrees to pay the amount specified in paragraph 4 above within twelve (12) months of the date of the bankrupt's discharge at a rate and schedule to be agreed upon between the trustee and the bankrupt. (Note that the current prescribed amount of $1,800 is a maximum and a lesser amount may be negotiated between the trustee and the bankrupt); and
  7. This agreement may be enforced by the Trustee after the bankrupt's discharge with respect to any unpaid amount still owing under the agreement.

And we have signed on space to insert date of signature

space to insert Bankrupt's Signature
Bankrupt
space to insert Trustee's Signature
Trustee
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