COVID-19’s impacts on our lives now include massive intrusions into the arrangements between borrowers and lenders. Customers have disappeared. Revenues have disappeared. But financial obligations remain. How can borrowers and lenders work together in these uncertain times to make the best of a bad situation?
Whether you’re a general contractor, a subcontractor, or a supplier, this decision regarding the application of the Builders’ Lien Act is important for your business.
In the Nova Scotia case Witch’s Glen Gold Inc., Re, 2015 NSSC 93, the sole creditor, Steve Furlotte, brought an application pursuant to s. 43 of the Bankruptcy and Insolvency Act (BIA) seeking a bankruptcy order against the debtor Witch’s Glen Gold Inc. (“WGC”).
Courts and lawmakers often refer to Canada Revenue Agency (“CRA”) as an involuntary creditor when businesses fail to make required tax payments to the governmental authority. The timely collection of taxes and payroll deductions also plays a fundamental role in the financing of government.