Common Credit Management Terms

  • Person
    Includes a human being (natural person), a partnership, and a corporation that is recognized by law as having rights and duties.

  • Personal Bankruptcy - Ordinary Administration
    An Ordinary Administration applies to bankruptcy files of individuals whose realizable assets are estimated to be worth $10,000 or more. This type of bankruptcy procedure provides, for example: - the publication of a notice of bankruptcy in a local newspaper; - a meeting of creditors within the 21 day period following the day of bankruptcy; - the possibility for the creditors to appoint 5 inspectors; - the approval of the trustee's fees by the inspectors.

  • Personal Bankruptcy - Summary Administration
    A Summary Administration applies to individuals whose realizable assets are estimated at less than $10,000. The Summary Administration of a bankruptcy estate is a simplified procedure in which, for example: - there is no publication of the notice of bankruptcy in a local newspaper; - a meeting of creditors is only called if requested by creditors and according to certain conditions; - no inspectors are appointed unless the creditors decide to appoint them; - joint assignments are permitted; - the trustee's fees are prescribed; - the trustee is discharged without a court appearance, except when a creditor or the Superintendent opposes the discharge.

  • Power of attorney
    A legal instrument setting out an individual's authority to act as the agent of the person giving the power of attorney.

  • Preference
    The payment of money or the granting of security by a debtor that benefits one or more creditors to the detriment of the other creditors.

  • Preferred creditor
    A creditor who has been given a priority under the Act over other creditors in the distribution of dividends.

  • Priority
    The order in which creditors are ranked for payment of claims provable under the Act.

  • Proof of Claim
    A creditor's written statement that is submitted to prove the creditor's claim; used as the basis for paying dividends, if accepted by the trustee.

  • Property
    Assets including money, land, movable and immovable property, personal and real property, situated in Canada or elsewhere.

  • Provable Claim
    Any liability of the debtor for a debt incurred before the date of the bankruptcy.

  • Proxy
    A document signed by a creditor granting another person the authority to represent them at creditors' meetings. The proxy holder can exercise the creditor's right to vote.


This glossary is presented as a service to our members and the general public. Click on the highlighted letter above and it will take you to the alphabetical section for the term you are seeking. As a new service, we welcome your suggestions to expand our glossary. Think a term should be explained differently? If so, you are welcome to submit the term and its meaning for our consideration. However, you must not do so by violating copyright and other laws. Don't see the term you're looking for? Contact us at so we can help you.