Balance sheet Statement of the assets and debts of an individual, couple, family or company. This exercise makes it possible to determine one’s financial situation at a given date. Bankruptcy A legal process that can be exercised when the debts of an individual or company exceed its assets or when its income is insufficient to pay its debts as the payment terms come up. When an individual or company declares bankruptcy, its assets are seized and distributed among its various creditors. Bankruptcy Estate The sum total of property that the bankrupt is required to transfer to the bankruptcy trustee, to be liquidated for distribution to creditors. Bankruptcy trustee Individual licensed by the superintendent of bankruptcy to administer the bankruptcy estate and proposals. Bill C-36 Companies’ Creditors Arrangement Act, which applies to companies whose debts exceed $5 million. Budget Statement of the income and expenses of an individual, couple, family or company. This exercise makes it possible to determine one’s financial situation at a given date. Commercial proposal An offer made by debtors to their creditors in order to modify their payments. This measure also allows a company to pursue its activities while its debt is being restructured. Conservation measures Measures taken to preserve the value of an asset and keep it from losing value. Consolidation A financial operation that consists in combining a number of debts to several creditors into a single long-term debt to a single creditor. Consumer proposal A simplified proposal for the repayment of debts to creditors by consumer debtors. This proposal is often made in conjunction with debt consolidation. Credit The degree of solvency of a company or individual. Credit file Information collected on your credit card balances and limits, credit margins, payment history (late payments), banking information, bankruptcies, judgements, accounts in collection, etc. Credit rating Measures the solvency or repayment reputation of an individual or company based on information gathered from financial institutions, retailers and other lenders. Creditor Individual or entity to which money is owed. Dependent Individual who depends on another for support (ex.: spouse, child who is a minor, handicapped or still in school). Dischargeable debts Debts that can be cancelled by a bankruptcy. Insolvency A situation in which an individual is unable to pay his debts on time or during the normal course of business. Inventory Detailed statement of the property held by an individual or company at a given date. Liquidation The sale of a company’s property, terminating its operations and generating a sum of money distribution to creditors by the trustee. Medical expenses Expenses relating to health care and incurred by an individual for himself or his dependents (ex.: dentist, orthodontist, optometrist, physiotherapist, etc.) Net income Gross salary minus income tax withheld. Non-dischargeable debts Debts that cannot be cancelled by a bankruptcy (ex.: fines, tickets, indemnity for bodily injury, child/spousal support debts, student loans of less than 7 years, debts resulting from fraud or embezzlement). Notice of intent A legal notice by which a debtor advises his creditors of his intention to present a proposal. The notice of intent gives the debtor from 30 days to 6 months to present said proposal. Official receiver An official appointed by the federal government to receive documents for the presentation of proposals and bankruptcies, to question the bankrupt under oath and to chair creditors’ meetings. Seizure Taking possession of a property further to a legal procedure, legal right or bankruptcy. Superintendent of bankruptcy Official who oversees the administration of all files to which the Bankruptcy and Insolvency Act applies. Support Money paid periodically to support a child, ex-spouse or other person in need. Surplus income Payments that must be made by the bankrupt during the bankruptcy period. The amount of these payments is based on standards established by the superintendent of bankruptcy and varies according to the personal and family situation of the bankrupt. Tax debts Monies due to one of the levels of government for the payment of income tax Turnaround The overall measures taken to restore the profitability of a company facing financial problems. Unseizable Property that cannot be seized by a bankruptcy trustee or creditor. As a result, the trustee cannot dispose of it for the benefit of creditors.