conditional discharge 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.Ī conditional discharge occurs when the Court imposes certain conditions that must be met before a person's discharge becomes absolute. (See Proof of Claim.) Companies’ Creditors Arrangement Act (CCAA) Federal law allowing insolvent corporations that owe their creditors in excess of $5 million to restructure their business and financial affairs. claim A statement by a creditor that he or she is owed money by a person. Once the Certificate has been issued, the debtor is released from the debt included in the proposal.
#BANKRUPTCY PREFERENTIAL TREATMENT FULL#
C Certificate of Full Performance of Proposal When an insolvent person ( debtor) meets the obligations outlined in the proposal, a Certificate of Full Performance of Proposal is issued by the Licensed Insolvency Trustee. Only a creditor can file an application for a bankruptcy order in court. bankruptcy order A bankruptcy order is a court order that forces a person, the estate or the succession of a deceased person or business into bankruptcy. Bankruptcy and Insolvency Act (BIA) The law that regulates bankruptcy and insolvency in Canada. Once debtors are formally declared bankrupt, lawsuits by creditor are stayed and garnishments against debtors' salaries stop. The LIT's role includes selling off those assets to satisfy outstanding debts. bankruptcy Governed by the Bankruptcy and Insolvency Act, bankruptcy is a formal process whereby debtors who cannot meet their obligations sign over all of their assets-except those exempt by law-to a Licensed Insolvency Trustee (LIT). The status remains until there has been a discharge from bankruptcy. Top of page B bankrupt The legal status of a person who is unable to pay his or her debt (that is, is insolvent) and has declared bankruptcy. the discharge is not opposed by the Licensed Insolvency Trustee, a creditor or the Office of the Superintendent of Bankruptcy.the bankrupt has made the payments from surplus income if and as required and.the bankrupt has not refused or neglected to receive counselling.This can happen only if the following conditions are met: When an automatic discharge occurs, the bankrupt doesn't have to go to court for the proceedings to be finalized. automatic discharge 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. assignment in bankruptcy When a debtor voluntarily assigns all of his or her property to a Licensed Insolvency Trustee so it can be sold or used to pay a debt. assets What a person owns that can be sold or used to pay a debt.
#BANKRUPTCY PREFERENTIAL TREATMENT FREE#
arm's length 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 has control over the other. affidavit A written statement of facts confirmed in front of an official such as a Notary Public or Commissioner of Oaths. Definitions A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A absolute discharge 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.
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