Bankruptcy and Insolvency Act

Marginal note:Costs in discretion of court

• 197 (1) Subject to this Act and to the General Rules, the costs of and incidental to any proceedings in court under this Act are in the discretion of the court.

• Marginal note:How costs awarded

  (2) The court in awarding costs may direct that the costs shall be taxed and paid as between party and party or as between solicitor and client, or the court may fix a sum to be paid in lieu of taxation or of taxed costs, but in the absence of any express direction costs shall follow the event and shall be taxed as between party and party.

• Marginal note:Personal liability of trustee for costs

  (3) Where an action or proceeding is brought by or against a trustee, or where a trustee is made a party to any action or proceeding on his application or on the application of any other party thereto, he is not personally liable for costs unless the court otherwise directs.

• Marginal note:When costs payable

  (4) No costs shall be paid out of the estate of the bankrupt, excepting the costs of persons whose services have been authorized by the trustee in writing and such costs as have been awarded against the trustee or the estate of the bankrupt by the court.

• (5) [Repealed, 2005, c. 47, s. 110]

• Marginal note:Priority of payment of legal costs

  (6) Legal costs shall be payable according to the following priorities:

  • (a) commissions on collections, which are a claim ranking above any other claim on any sums collected;

  • (b) when duly authorized by the court or approved by the creditors or the inspectors, costs incurred by the trustee after the bankruptcy and prior to the first meeting of creditors;

  • (c) the costs on an assignment or costs incurred by an applicant creditor up to the issue of a bankruptcy order;

  • (d) costs awarded against the trustee or the estate of the bankrupt; and

  • (e) costs for legal services otherwise rendered to the trustee or the estate of the bankrupt.

• Marginal note:Costs of discharge opposed

  (6.1) If a creditor opposes the discharge of a bankrupt, the court may, if it grants the discharge on the condition that the bankrupt pay an amount or consent to a judgment to pay an amount, award costs, including legal costs, to the opposing creditor out of the estate in an amount that is not more than the amount realized by the estate under the conditional order, including any amount brought into the estate under the consent to the judgment.

• Marginal note:Costs where opposition frivolous or vexatious

  (7) If a creditor opposes the discharge of a bankrupt and the court finds the opposition to be frivolous or vexatious, the court may order the creditor to pay costs, including legal costs, to the estate.

• (8) [Repealed, 2005, c. 47, s. 110]