The0501n objective of the new Bankruptcy Act (Bill C-22) is to promote the use of financial reorganization in order to increase the chances of survival of businesses that are experiencing financial difficulties and, as a consequence, to save jobs. Data from a sample of 417 commercial bankruptcies and 393 financial reorganizations are used to determine whether or not this represents an improvement over the previous system and whether or not the objective to increase the proportion of reorganizations will be met. Results from the statistical and logit analyses suggest that (i) the new voting requirement will increase the number of accepted proposals by 1.5 percentage points, (ii) the change in Crown priority will raise the success and acceptance rate by 2.32 and 0.79 percent respectively and (iii) the changes relating to stay of proceedings are expected to raise the use of holding proposals and thus reduce the likelihood of acceptance of a proposal by unsecured creditors. Finally, that there are several reasons to believe that encouraging firms that would otherwise have opted for bankruptcy to reorganize will not be an efficiency gain for the Canadian economy.