The process by which a person voluntarily places themselves in Bankruptcy. Most bankruptcies in Canada are voluntary.

The state of being bankrupt or the fact of becoming bankrupt.

All funds received by a Licensed Insolvency Trustee from any source are placed into a trust fund. This would include surplus income payments, funds from the sale of non-exempt assets, tax refunds as appropriate etc. Out of these funds, the trustee is entitled to a set fee as determined by a Government set tariff and then any remaining funds are distributed by the Trustee to the Unsecured Creditors.

Both individual bankrupts and those making a consumer proposal are required to go through counselling sessions with a qualified counsellor. You will be required to attend two sessions, which primarily cover good financial management (including prudent use of consumer credit and budgeting principles); developing successful strategies for achieving financial goals and overcoming financial setbacks; restoring one’s credit rating and at any over time,...

One to whom a debt is owed; in insolvency matters, a person having a claim provable under the Bankruptcy and Insolvency Act. Secured creditors have collateral (i.e. a charge or lien) against the property of the debtor, whereas unsecured creditors have no collateral.

The release of a debtor from the obligation to repay his or her unsecured debts. A bankrupt’s discharge may be automatic, suspended, conditional or absolute. A bankrupt may also be refused discharge.

The amount a creditor receives out of the funds paid into a bankrupt’s estate or through a consumer proposal.