Bankruptcy Definitions

These definitions below are provided solely for the purpose of facilitating the reader’s understanding of the terms used on this website in Ontario

Our Most Popular Bankruptcy in Ontario Definitions

These definitions below are provided solely for the purpose of facilitating the reader’s understanding of the terms used on this website in Ontario. They are general interpretations only and are not to be considered legal definitions. If you have a specific question please let us know. If you would like to use our questions for educational, institutional, or business purposes please let us know. For additional information please call us at 416-665-3328 or email.

Administrator
A person designated by the Superintendent of Bankruptcy, responsible for the administration of a consumer proposal under the Bankruptcy and Insolvency Act.

Bankruptcy
Bankruptcy is a legal process, regulated by the Bankruptcy and Insolvency Act, by which you may be discharged from most of your debts.

Creditor
One to whom a debt is owed; in insolvency matters, a person (an individual), a partnership, and a corporation that is recognized by law as having the same rights and duties as a natural person) having a claim provable under the Bankruptcy and Insolvency Act.

Debt
A specific sum of money due by agreement or otherwise.

Debtor
One who owes money to another.

Discharge from bankruptcy
The release of a debtor from the obligation to repay his or her debts. A bankrupt’s discharge may be automatic, suspended, conditional or absolute. A bankrupt may also be refused discharge.

Estate
All the property of a person; the file in bankruptcy.

Insolvency
The condition of being unable to pay debts as they become due, or in the ordinary course of business, or having liabilities that exceed the total value of assets.

Interest
The amount paid or earned for the use of money.

Secured credit / debt
Secured credit is when you have promised something concrete to a creditor if you do not pay your debts as agreed to in your contract. The item you promised is called the security or collateral. Security can be money or property such as savings bonds, vehicles, furniture, or a house.

Seizure
The act of taking possession of property by legal right or process.

Surplus income
The portion of an individual bankrupt’s income that is required to be paid into the bankruptcy estate during the bankruptcy as per standards established by the Office of the Superintendent of Bankruptcy.

Licensed Insolvency Trustee
A person licensed by the Superintendent of Bankruptcy to administer bankruptcy and proposal estates.

Unsecured credit / debt
Unsecured credit means there is nothing you have promised to give the creditor if you do not pay your debts. Most credit cards and lines of credit are unsecured. Services like utilities and cable are also usually unsecured.

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Ross Taylor
Ross Taylor
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I have been referring my clients to Carl and Jordan Rumanek for more than ten years and I am proud to know them and respect very much their values and the services they provide. There are no bad questions with Rumanek and Company - and they work hard to find a balanced solution that benefits both the creditors and the debtor. Jordan has taught me a great deal about the insolvency business!
Sharon Maxwell
Sharon Maxwell
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I am so grateful to Jordan Rumanek for the time and effort he put in to solving my bankruptcy problem. He worked well with me and my lawyer, recognized the problem and had a solution, and communicated promptly. Things were settled in a very timely manner. I would highly recommend him!
Michael Fazari
Michael Fazari
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Jordan of Rumanek & Company Ltd helped me through my default and had my bankruptcy discharged extremely quickly. The staff were knowledgeable and were beyond accommodating to my needs. I applaud all of the staff at Rumanek & Company and the way they go above and beyond to help their clients.
Sam Velarde
Sam Velarde
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Jordan Rumanek of Rumanek & Company Ltd has helped me through a difficult time in my life. The staff have gone beyond the call of duty. I appreciate all the staff at Rumanek & Company and the way they treat me. I would recommend them to anyone with financial problems.
Todd H
Todd H
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Jordan and his team took extremely good care of me from start to finish. They explained everything with great detail and dealt with everything in an efficient and professional manner. I would highly recommend them should you ever need assistance with a consumer proposal or bankruptcy.
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