In bankruptcy proceedings, there are two players: Licensed Insolvency Trustees and Bankruptcy Lawyers. It is important to note who to call first.

In this case, the Court considers the importance of establishing a direct connection/chain between the party claiming a trust relationship and the party against whom trust obligations are imparted.  

Section 67(1)(a) of the Bankruptcy and Insolvency Act (the “BIA”) establishes that the property of a bankrupt divisible among his creditors shall not comprise property held by the bankrupt in trust for any other person. This means that, monies held in trust – such as the CLA imposed trust – would not be considered as property of the bankrupt for distribution amongst creditors.