A bar (i.e. stop) against any creditor for the recovery of a claim provable in bankruptcy or a proposal against the insolvent person or the insolvent person’s property. No creditor shall start or continue any action, execution or other proceeding for the recovery of such claims.

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

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

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.

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.

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

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

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

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.