A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Here are a few terms you may run into.

• Bankrupt: a person who has made an assignment into bankruptcy
• Bankruptcy: when a debtor ceases to meet his liabilities, generally as they become due
• Bankruptcy and Insolvency Act (BIA): a federal statute governing bankruptcy and insolvency in Canada, which is applicable to all provinces and territories
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• Consumer Proposal: a simplified form of proposal available to debtors owing less than an amount prescribed in the Bankruptcy and Insolvency Act.
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• Discharge from Bankruptcy: The release of a debtor from the obligation to repay his or her debts. A bankrupt’s discharge may be automatic, suspended, conditional, or absolute. A bankrupt may also be refused a discharge
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• Garnishment: A legal process whereby a creditor requires a third party to relinquish to the creditor, a debtor’s property such as wages or bank accounts
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• Insolvency: The condition of being unable to pay debts as they become due or in the ordinary course of business. Having liabilities that exceed the total value of assets
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• Notice of Intention to file a proposal: A legal document filed with the Official Receiver stating that the debtor intends to file a proposal. The document includes the name and address of the licensed trustee who has consented in writing to act as the trustee under the proposal, as well as the names of the creditors who are owed $250 or more and the amounts of their claims. Filing of this document triggers the protection afforded to insolvent debtors under the Bankruptcy and Insolvency Act
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• OSB: Office of the Superintendent of Bankruptcy, an agency of Industry Canada that supervises the administration of the Bankruptcy and Insolvency Act. It has Division Offices throughout Canada
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• Proof of Claim: A creditor’s written statement that is submitted to prove the creditor’s claim and is used as the basis for paying dividends if accepted by the trustee
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• Receiver: A person who has taken possession of substantially all inventory, accounts receivables, or other property of the debtor following a security agreement. "Receiver" also includes a person who has been appointed privately or by an order of the court, pursuant to a security agreement, for the protection or collection of property that is the subject of diverse claims, usually to seize and sell the property of the debtor
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• Secured Creditor: A person holding an instrument such as a mortgage or a lien on/against the whole/part of the property of a debtor as security for a debt due
• Superintendent of Bankruptcy: A federally appointed official who oversees the administration of the Bankruptcy and Insolvency Act in Canada
• Surplus Income: The portion of a bankrupt’s income that is required to be paid into the bankruptcy estate during the bankruptcy, per standards established by the OSB
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• Trustee in Bankruptcy: A person licensed by the Superintendent of Bankruptcy to administer bankruptcy and proposal estates
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• Unsecured creditor: A creditor who advances credit without taking any rights against the property of the debtor
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