Holding the High Ground: The Position of Secured Creditors in Consumer Bankruptcies and Proposals

This article examines the position of secured creditors in the event of a consumer debtor\u27s bankruptcy or the filing of a consumer proposal, as determined by the federal and provincial laws of Canada. Secured creditors in Canada are in a remarkably powerful position relative to other claimants in bankruptcy and to their counterparts in the United States. Their rights of realization against the collateral are essentially unaffected by the initiation of either a consumer bankruptcy or proposal. Moreover, recent judicial developments appear to further enhance secured creditors\u27 rights of enforcement, both against the in personam payment obligation and against the bankrupt\u27s property after his or her discharge