Bankruptcy is a legal process that provides immediate relief from your unsecured debt burden, the most common example being credit card debt. It is important to note that certain types of debt are not wiped out or addressed by declaring bankruptcy, which means it's not necessarily an all-encompassing solution for your financial challenges.

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.