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

A claim or liability that is attached to property or some other right that may lessen its value, e.g. a lien or mortgage.

The difference between the market value of an asset and the debt secured against it.

Assets defined as exempt by provincial legislation that are not available to the trustee for the benefit of creditors.

Meeting called by the trustee to consider the affairs of the bankrupt or debtor in a Proposal, to affirm the appointment of the trustee, to appoint inspectors, and to give such directions to the trustee as the creditors may see fit.

A legal process whereby a creditor requires a third party to turn over to the creditor, a debtor’s property such as wages or bank accounts.

A contract under which all the personal property of a debtor is pledged as security to a lender; (not used in all provinces).

A person who takes on financial responsibility for another’s debt.

A person who is unable to pay debts as they become due in the ordinary course of business, or having liabilities that exceed the total value of assets.