12. Introduction to Bankruptcy


Key Terms

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.

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

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.

Secured creditor means a person holding a mortgage, pledge, charge or lien on or against the property of the debtor or any part of that property as security for a debt due or accruing due to the person from the debtor.

Trustee is a licensed professional appointed by the Office of the Superintendent of Bankruptcy (OSB) to administer a bankruptcy estate. Trustees are responsible for providing creditors with information about the bankruptcy estate, as well as providing debtors with information about their rights and obligations under the Bankruptcy and Insolvency Act.



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