The final step in bankruptcy proceedings, an absolute discharge is the release of the bankrupt from the legal obligation to pay back what is owed—with some exceptions—as of the date of the filing of the bankruptcy.
Describes dealings between two parties who are free and independent of each other and who do not share a special relationship such as being related or where one party as control over the other.
The final step in bankruptcy proceedings, a discharge is the release of the bankrupt from the legal obligation to pay back what is owed—with some exceptions—as of the date of the filing of the bankruptcy.
When an automatic discharge occurs, the bankrupt doesn’t have to go to court for the proceedings to be finalized. This can happen only if the following conditions are met:
it is the first or second bankruptcy;
the bankrupt has not refused or neglected to receive counselling;
The legal status of a person who is unable to pay his or her debt (that is, is insolvent) and has declared bankruptcy. The status remains until there has been a discharge from bankruptcy.
A legal process governed by the Bankruptcy and Insolvency Act for a person who can no longer pay back debt. The person who owes the debt assigns all assets
—with some exceptions
—to a trustee in bankruptcy who sells it or uses it to help pay the debt to the creditors.
When an insolvent person (debtor) meets the obligations outlined in the proposal, a Certificate of Full Performance of Proposal is issued by the trustee. Once the Certificate has been issued, the debtor is released from the debt included in the proposal.
The final step in bankruptcy proceedings, a discharge is the release of the bankrupt from the legal obligation to pay back what is owed—with some exceptions—as of the date of the filing of the bankruptcy.
A conditional discharge occurs when the Court imposes certain conditions that must be met before a person’s discharge becomes absolute. For example, the Court may require the debtor to pay an amount to the trustee in bankruptcy for distribution to creditors.
In Alberta, Saskatchewan or Nova Scotia, a debtor can voluntarily seek out a legal proceeding (also known as an orderly payment of debt program) to help make their payments.
The order will consolidate all debts and determine an amount that the debtor must pay to the Court on a periodic basis. Upon receipt of the payments, the Court will make payments to the creditors on behalf of the debtor. In most cases, the period of time of the program set by the court is three years.
A formal offer by a debtor to creditors. This may include an offer to pay a percentage of the debt, pay back the debt over a longer period of time, or both.
This option is available to individuals whose total debt does not exceed $250 000, not including debts secured by their principal residence.
Counselling is designed to help debtors figure out why they got into financial trouble and teach them to better manage their financial affairs in the future.
Counselling must be given by a counsellor registered with the Office of the Superintendent of Bankruptcy.
A debtor is a person who owes a specific debt (usually money) to another person. In the context of the Bankruptcy and Insolvency Act, a debtor is a person who is insolvent, that is, he of she cannot pay off debt as it becomes due.
The final step in bankruptcy proceedings, a discharge is the release of the bankrupt from the legal obligation to pay back what is owed—with some exceptions—as of the date of the filing of the bankruptcy.
When an absolute discharge occurs, the bankrupt is released from his or her legal obligation to pay back the debt—with some exceptions—as of the date of the filing of the bankruptcy.
When an automatic discharge occurs, the bankrupt doesn’t have to go to court for the proceedings to be finalized. This can happen only if the following conditions are met:
The Court may impose certain conditions that must be met before a person’s discharge becomes absolute. For example, the Court may require the bankrupt to pay an amount to the trustee in bankruptcy for distribution to creditors.
A formal offer by a debtor to creditors. This may include an offer to pay a percentage of the debt, pay back the debt over a longer period of time, or both.
Unlike a consumer proposal, there is no limit with respect to how much money is owed.
A person appointed by creditors to represent them before the trustee in bankruptcy during the administration of a bankruptcy or proposal. An inspector assists the trustee and is required to supervise certain aspects of the trustee‘s work.
An interim receiver is a trustee in bankruptcy appointed by the court to safeguard the estate’s assets and perform other functions as the Court may order.
A way of resolving conflict between two or more people. The parties involved in the disagreement agree to work with an unbiased person (a mediator) who helps them settle their dispute.
A legal document stating that the debtor intends to file a Division 1 (commercial) proposal to creditors. Once filed, actions against the debtor by unsecured creditors are stopped.
The Office of the Superintendent of Bankruptcy ensures a fair and efficient marketplace by protecting the integrity of the bankruptcy and insolvency system for the benefit of investors, lenders, consumers and the public. This is done through the supervision of the administration of all estates and matters under the Bankruptcy and Insolvency Act.
In Alberta, Saskatchewan or Nova Scotia, a debtor can voluntarily seek out a legal proceeding (also known as an Consolidation Order) to help make their payments.
The program will consolidate all debts and determine an amount that the debtor must pay to the Court on a periodic basis. Upon receipt of the payments, the Court will make payments to the creditors on behalf of the debtor. In most cases, the period of time of the program set by the court is three years.
A creditor is a person, institution or business who is owed money, goods or services. A preferred creditor has a first claim to any funds that are available.
A written statement that, along with documents that verify it, proves a claim by a creditor. If accepted by the trustee in bankruptcy, the proof of claim is used to determine how much is paid to the creditor.
Persons who are connected by a blood relationship, marriage, adoption or common law partnership. The Bankruptcy and Insolvency Act states that the definition of “related persons” extends to corporations, shareholders and directors in certain situations.
A resolution decided by a majority in number and three-fourths in value of the creditors with proven claims present, personally or by proxy, at a meeting of creditors and voting on the resolution.
A creditor is a person who is owed money, goods or services. A secured creditor is one who takes collateral for the extension of credit such as when a car or house is purchased.
A resolution decided by a majority in number and three-fourths in value of the creditors with proven claims present, personally or by proxy, at a meeting of creditors and voting on the resolution.
The debtor‘s financial statement that contains a list of assets and liabilities, the estimated value of assets, the names and addresses of creditors, and the amounts owed to those creditors. This is usually presented at the beginning of the process.
A statement from the trustee in bankruptcy that lays out the list of funds that have been received (including interest), the fees charged by the trustee, all the dividends distributed to the creditors and particulars of property that is not sold. This is usually presented at the end of the process.
Once a person files for bankruptcy or files a proposal, a “stay of proceedings” immediately prevents creditors from either starting or continuing a legal action against the debtor.
Amount of a debtor’s total income that exceeds what is necessary to maintain a reasonable standard of living according to the standards set by the Office of the Superintendent of Bankruptcy. The bankrupt must make payments out of this surplus income to the bankruptcy estate for distribution among the creditors.
The final step in bankruptcy proceedings, a discharge is the release of the bankrupt from the legal obligation to pay back what is owed—with some exceptions—as of the date of the filing of the bankruptcy.
A suspended discharge occurs when the Court orders a delay so the bankrupt’s discharge will not be effective until a later date.
A creditor is a person who is owed money, goods or services. An unsecured creditor is one who gives credit but who does not have any security for the debt owed them.
For the residents of Quebec, a proceeding where the debtor makes a monthly payment based on his or her income and number of dependents to the Court who will, in turn, distribute theses payments to the creditors until the debt is paid.
