At D. & A. MacLeod Company Ltd., we understand that our industry has many terms that you may not be familiar with. Below, we’ve compiled a list of some common terms for your convenience.
Assignment to Trustee
In bankruptcy, a debtor can formally assign all property to a trustee who will then use the property to satisfy creditors.
This is the person or business to whom a debt is owed.
This term applies to the time when a debtor is released from the obligation to pay a debt.
If you owe money to multiple creditors, this is the portion paid to the trustee (see Assignment to Trustee defined above) to each creditor with a proven claim.
This refers to a prior claim on a property (such as a lien or a mortgage) which reduces its value.
When the value of a property appreciates, equity is the difference between the amount owed and the actual market value of the property.
This refers to property which, by law, a trustee cannot use to satisfy creditors.
A meeting between the trustee of an estate and the creditors to discuss a proposal and any attendant inspections or instructions the creditors may require.
This is the process by which a creditor who has obtained a judgment may serve a summons (called a garnishee summons) upon a debtor’s employer or bank to release the debtor’s wages or bank account to pay what is owed to the creditor.
This is an individual who takes the responsibility of repaying someone else’s debt or loan.
This refers to an individual who is unable to pay mounting debts in a timely manner or one whose debts are well in excess of their assets.
Creditors appoint an inspector to work with the trustee and oversee the trustee’s handling of proposals and property in a bankruptcy.
This term applies to the court’s decision on the validity of a creditor’s statement of claim.
This refers to any debts, including money owed for taxes, services, liens, etc. that will be deducted from a creditor’s assets.
This refers to an employee of the Office of the Superintendent of Bankruptcy with whom one files the documents required for a proposal or bankruptcy who officiates meetings between trustees and creditors.
Orderly Payment of Debts
This is the procedure defined in the Bankruptcy and Insolvency Act, by which a person can pay off his or her debts.
This is an agent appointed by the court to review and inventory the debtor’s assets and income, indicating what may be distributed to creditors and what is exempt.
This is an officer of the provincial court empowered by the Bankruptcy and Insolvency Act to hear and act in matters of bankruptcy.
Statement of Assets
This applies to a financial statement which indicates the value of a debtor’s assets and the details of debts owed, including the amount and the names and addresses of all creditors.
Statement of Receipts and Disbursements
This is a financial statement drawn up by the trustee and indicates receipt of property, what has been paid to creditors, what property remains unsold and any disbursements or fees charged for the administration of the estate.
Licensed Insolvency Trustee
This is an individual licensed by the Superintendent of Bankruptcy (a federal official with oversight of the Bankruptcy and Insolvency Act) to manage bankruptcy and proposal estates.