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An Ontario court has granted a motion from the federal Superintendent of Bankruptcy to provide debtors with greater flexibility to meet their repayment obligations under insolvency proposals.

Following a motion from the superintendent, the Ontario Superior Court of Justice issued an order that will give residents of Ontario who have filed for insolvency more latitude to meet their repayment requirements during the Covid-19 pandemic.

The court-ordered relief includes allowing debtors to miss an additional three payments under consumer proposals between March 13 and Dec. 31, 2020, before they are considered in default.

The Office of the Superintendent of Bankruptcy (OSB) said that applications for similar relief are scheduled to be heard by courts in other provinces and territories in the next couple of days.

The ruling follows the recent announcement that the Canada Revenue Agency (CRA) won’t force debtors that are facing financial hardship due to the pandemic into bankruptcy.