January 14: Denis Coderre Bankruptcy — C$1.1M Debt, Creditor Proposal
Denis Coderre bankruptcy is now formal. On January 14, the former Montreal mayor sought protection under the Bankruptcy and Insolvency Act with about C$1.1 million in liabilities. Listed debts include Canada Revenue Agency tax arrears, a mortgage lender, and a Scotiabank Visa balance. A January 26 creditor proposal will outline repayment terms. We explain what this filing signals for creditor recoveries, how proposals work in Canada, and what retail investors should watch in a changing consumer credit landscape.
Key facts: Denis Coderre’s filing and liabilities
Coderre sought protection under the federal insolvency framework to stabilize his situation and negotiate with creditors. The process pauses most collection and allows a structured plan. Filings of public figures often draw attention to how Canadian law treats tax debt, secured loans, and cards. Early disclosures confirm a formal proceeding under the Bankruptcy and Insolvency Act linked to the Denis Coderre bankruptcy case.
Public reports cite about C$1.1 million in liabilities, including Canada Revenue Agency tax arrears, a mortgage lender, and a Scotiabank Visa balance. These indicate a mix of unsecured and secured claims, which face different outcomes in proposals. For background, see reporting from Journal de Montréal source and 98.5 FM Montreal radio analysis source.
What the January 26 creditor proposal could mean
A proposal under the Bankruptcy and Insolvency Act lets a debtor offer terms to unsecured creditors, such as fixed monthly payments or a lump sum funded by assets or income. If accepted and approved by court, it can reduce balances and extend timelines. It can also provide more certainty than a bankruptcy, an important nuance in the Denis Coderre bankruptcy context.
Credit cards like a Scotiabank Visa are usually unsecured and often fall under the proposal offer. Canada Revenue Agency tax arrears can be addressed in a proposal, with negotiated repayment and possible interest relief. Mortgages are typically secured against property and may continue outside the proposal if kept current. The exact mix will be clearer when the January 26 terms are filed in Canada.
Why this case matters for investors in Canada
The Denis Coderre bankruptcy spotlights consumers with mixed debt stacks facing higher costs and slower income growth. While every file is unique, proposals can influence loss timing and recovery rates for lenders. Investors should watch commentary from banks on card charge‑offs, mortgage delinquency buckets, and how often borrowers choose proposals instead of straight bankruptcies.
Key milestones include filing of the January 26 proposal, creditor voting, and any court approval. Investors will want clarity on payout percentages, duration, and treatment of tax and secured claims. The Denis Coderre bankruptcy may also shape public views on creditor proposal Canada processes, especially where CRA, mortgage lenders, and card issuers share the same borrower.
Final Thoughts
For Canadian readers, the Denis Coderre bankruptcy is a real-time study in how the Bankruptcy and Insolvency Act balances debtor relief and creditor recovery. Expect the January 26 proposal to define who gets paid, how much, and over what period. Unsecured lenders will likely focus on affordability, stability of income, and available non-exempt assets. CRA tax debts can be negotiated within proposals, while mortgages often sit outside if payments continue. Action plan: track the proposal filing, note creditor responses, and listen for lender commentary on recoveries and provisions. These signals help gauge consumer credit risk as more Canadians consider formal proposals.
FAQs
What is the Bankruptcy and Insolvency Act and how does it apply here?
The Bankruptcy and Insolvency Act is Canada’s federal law that governs bankruptcies and proposals. It pauses most collections, appoints a Licensed Insolvency Trustee, and sets rules for voting and court approval. In this case, it frames the Denis Coderre bankruptcy process and the upcoming proposal that may restructure unsecured debts and timelines.
What is a creditor proposal in Canada?
A creditor proposal Canada is a binding offer to unsecured creditors that can reduce balances and stretch payments. If creditors accept and a court approves, it replaces individual collection efforts. It aims to deliver better recoveries than bankruptcy while allowing the debtor to maintain employment, income stability, and certain assets.
How are Canada Revenue Agency tax arrears treated in proposals?
Canada Revenue Agency tax arrears can be included in a consumer proposal. The debtor offers terms that address principal and may seek relief on penalties or interest. CRA evaluates affordability and compliance going forward. If the proposal is approved, it binds CRA alongside other unsecured creditors under the same plan.
What happens if creditors reject the proposal?
If creditors reject the proposal, the file may convert to a bankruptcy or the debtor could revise and resubmit an offer. A conversion typically leads to asset realization based on exemptions and priorities, with unsecured creditors sharing net proceeds. The path chosen depends on affordability, creditor positions, and trustee guidance.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
