Useful Definitions

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Below is a list of terms commonly used by trustees. These definitions and more can be found in the Bankruptcy and Insovlency Act.

Contact S.Funtig and Associates at (519) 252-8227, through live chat, or through our FREE consultation online form.


Bankrupt – means a person who has made an assignment or against whom a bankruptcy order has been made or the legal status of that person.

Bankruptcy – means the state of being bankrupt or the fact of becoming bankrupt.

Court – a court referred to in subsection 183(1) or (1.1) or a judge of that court, and includes a registrar when exercising the powers of the court conferred on a registrar under this Act.

Creditor – means a person having a claim provable as a claim under this Act.

Current Assests – means cash, cash equivalents — including negotiable instruments and demand deposits — inventory or accounts receivable, or the proceeds from any dealing with those assets.

Debtor – includes an insolvent person and any person who, at the time an act of bankruptcy was committed by him, resided or carried on business in Canada and, where the context requires, includes a bankrupt.

Insolvent Person – means a person who is not bankrupt and who resides, carries on business or has property in Canada, whose liabilities to creditors provable as claims under this Act amount to one thousand dollars, and

  • (a) who is for any reason unable to meet his obligations as they generally become due,

  • (b) who has ceased paying his current obligations in the ordinary course of business as they generally become due, or

  • (c) the aggregate of whose property is not, at a fair valuation, sufficient, or, if disposed of at a fairly conducted sale under legal process, would not be sufficient to enable payment of all his obligations, due and accruing due

Official Receiver – means an officer appointed under subsection 12(2).

Property – means any type of property, whether situated in Canada or elsewhere, and includes money, goods, things in action, land and every description of property, whether real or personal, legal or equitable, as well as obligations, easements and every description of estate, interest and profit, present or future, vested or contingent, in, arising out of or incident to property.

Proposal – means:

  • (a) in any provision of Division I of Part III, a proposal made under that Division, and

  • (b) in any other provision, a proposal made under Division I of Part III or a consumer proposal made under Division II of Part III

and includes a proposal or consumer proposal, as the case may be, for a composition, for an extension of time or for a scheme or arrangement.

Trustee or Licensed Trustee – means a person who is licensed or appointed under this Act.

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(519) 252-8227




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