Glossary of Terms
Bankruptcy / Proposal / Financial Glossary |
| You can always search for entries (regexp permitted). | |
|
Submit Term | |
| D | |
| There are 18 entries in the glossary. | |
| Pages: 1 | |
| Term | Definition |
| Date of the Initial Bankruptcy Event | The earliest of the date of filing or making of:
|
| debtor | A person who owes money, goods or services to another. An insolvent person who is not bankrupt. |
| Debts not Released by Order of Discharge | These are found in subsection 178(1) of the Act. They include:
|
| deemed | To be adjudged, held or pronounced to be, usually by statute or by Court. |
| deemed Trust | A deemed trust is a trust that is established by statute (law) for certain claims, and deemed to be in effect even though there may not be any actual assets or monies held in that trust. For example, the provisions of the Income Tax Act create a deemed trust for employee source deductions. The amounts deducted are deemed to be held in trust for the Crown, whether or not the funds have been kept separate and apart from the property of the employer, and notwithstanding any security interest in the property or proceeds thereof. The proceeds are to be paid to the Crown in priority to all security interests. |
| default | Failure to pay or otherwise perform obligations under a contract. |
| defer | To delay or postpone to a future time. |
| Directive | Subsection 5(4) of the Bankruptcy and Insolvency Act empowers the Superintendent of Bankruptcy to issue directives. Every person to whom a directive is issued must comply with the directive. Directives may be issued concerning: counselling; the carrying out of the purposes and provisions of this Act and General Rules; the criteria to be applied by the Superintendent in determining whether a trustee license is to be issued to a person and governing the qualifications and activities of trustees; and prescribing the form of any document that is to be prescribed by the Act and the information to be given therein. Subsection 68(1) requires that a directive be issued by the Superintendent to establish the standards for determining the portion of total income of an individual bankrupt that exceeds that which is necessary to enable the bankrupt to maintain a reasonable standard of living. This directive governs the calculation and treatment of surplus income. |
| directors | Persons elected by the shareholders of a corporation to manage or supervise the management of the affairs and business of the company. |
| Directors’ Liability | The liability of the directors of the company to the shareholders and others for negligence, fraud, or acts committed outside the scope of their authority. In certain cases, directors are automatically liable for certain debts of a company, including (but not limited to) wages to employees, source deductions, and GST. |
| disallowance | To refuse or to set aside. For example, the Trustee in Bankruptcy, under the Bankruptcy and Insolvency Act, can disallow a claim submitted by a creditor. |
| discharge | To cancel or relieve a person of an obligation or responsibility. |
| discharge of Bankrupt | For bankrupts who do not qualify for the automatic discharge, the trustee is required within one year from the beginning of the bankruptcy to apply to the court for a hearing of the application for a discharge. There are several types of discharge orders that can be granted by the court. At the discharge hearing, the court decides whether to postpone the hearing to a later date, refuse the discharge, or issue any of the following orders: o Absolute discharge order: relieves the bankrupt of the debts incurred before the bankruptcy, except for those that fall under Section 178(1) of the Bankruptcy and Insolvency Act. o Conditional discharge order: certain (specific) conditions must be met before an absolute order of discharge is issued. o Suspended discharge order: the court orders a delay before the discharge becomes effective. This type of discharge is typically issued if it is not a first time bankruptcy. Other reasons for a suspended order include: gambling as a cause of insolvency or other conduct issues. |
| disclaim | The act of denying, refusing, renouncing or repudiating an interest that one might have in some item. |
| dissolution | The act of ending, terminating or winding up of a company or state of affairs. |
| Distress/Distrain | The right that a landlord has to seize the property of a tenant on the premises being rented and sell that property for payment of rent arrears. |
| Dividend | Under the Bankruptcy and Insolvency Act it refers to those monies paid by a Trustee in Bankruptcy or the administrator of a consumer proposal to the creditors. |
| Duties of a Bankrupt: | Obligations that must be performed by a bankrupt. For example, advising the trustee of any material changes to the financial situation or changes of address prior to the discharge from bankruptcy. |
| Glossary V2.0 | |