Glossary
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Administrator
A person designated by the Superintendent of Bankruptcy, responsible for the
administration of a consumer proposal under the Bankruptcy and Insolvency
Act.1
Bankruptcy
Bankruptcy is a legal process, regulated by the Bankruptcy and Insolvency
Act, by which you may be discharged from most of your debts1.
Creditor
One to whom a debt is owed; in insolvency matters, a person (an individual),
a partnership, and a corporation that is recognized by law as having the same
rights and duties as a natural person) having a claim provable under the
Bankruptcy
and Insolvency Act.1
Debt
A specific sum of money due by agreement or otherwise.1
Debtor
One who owes money to another.1
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 discharge.1
Estate
All the property of a person; the file in bankruptcy.1
Insolvency
The condition of being unable to pay debts as they become due, or in the
ordinary
course of business, or having liabilities that exceed the total value of
assets.1
Interest
The amount paid or earned for the use of money.2
Secured credit / debt
Secured credit is when you have promised something concrete to a creditor if
you do not pay your debts as agreed to in your contract. The item you
promised
is called the security or collateral. Security can be money or property such
as savings bonds, vehicles, furniture, or a house.3
Seizure
The act of taking possession of property by legal right or process.1
Surplus income
The portion of an individual bankrupt's income that is required to be paid
into the bankruptcy estate during the bankruptcy as per standards established
by the Office of the Superintendent of Bankruptcy.1
Trustee in bankruptcy
A person licensed by the Superintendent of Bankruptcy to administer bankruptcy
and proposal estates.1
Unsecured credit / debt
Unsecured credit means there is nothing you have promised to give the creditor
if you do not pay your debts. Most credit cards and lines of credit are
unsecured.
Services like utilities and cable are usually unsecured.3
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