Bankruptcy Definitions Glossary

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

What is the definition of bankruptcy?

The following glossary is intended to aid readers in understanding the terminology used on this Ontario-based website. The definitions provided here are general interpretations, not legal definitions. If you have specific questions, please reach out to us. If you’re interested in using these definitions for educational, institutional, or business purposes, please contact us. For further details, please call us at 416-665-3328 or send us an email.

Administrator
An individual appointed by the Superintendent of Bankruptcy, tasked with overseeing the execution of a consumer proposal under the Bankruptcy and Insolvency Act.

Bankruptcy
A lawful procedure, guided by the Bankruptcy and Insolvency Act, that allows discharge from most debts.

Creditor
An entity or individual to whom a debt is owed. In the context of insolvency, it refers to a person, partnership, or corporation recognized by law as having the same rights and duties as a natural person, with a provable claim under the Bankruptcy and Insolvency Act.

Debt
An agreed-upon or otherwise due sum of money.

Debtor
An individual or entity who owes money to another party.

Discharge from Bankruptcy
The release of a debtor from their obligation to repay their debts. Discharge may be automatic, suspended, conditional, or absolute, and can sometimes be refused.

Estate
A person’s total property; the file in bankruptcy.

Insolvency
The state of being unable to meet debts as they are due or having liabilities that surpass the total value of assets.

Interest
The amount earned or paid for borrowing or lending money.

Secured Credit/Debt
Secured credit refers to a debt arrangement where the debtor has provided a tangible asset (collateral) as a guarantee to the creditor. This collateral could range from savings bonds, vehicles, furniture, to real estate properties.

Seizure
The lawful act of claiming possession of an asset.

Surplus Income
The portion of a bankrupt individual’s income required to be contributed to the bankruptcy estate during the bankruptcy, as per standards set by the Office of the Superintendent of Bankruptcy.

Licensed Insolvency Trustee
An individual licensed by the Superintendent of Bankruptcy to manage bankruptcy and proposal estates.

Unsecured Credit/Debt
Unsecured credit denotes a debt agreement where the debtor hasn’t pledged any collateral to the creditor. Most credit cards and lines of credit fall into this category. Services like utilities and cable are typically unsecured too.

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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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