Glossary of Terms
Bankruptcy / Proposal / Financial Glossary |
| You can always search for entries (regexp permitted). | |
|
Submit Term | |
| P | |
| There are 21 entries in the glossary. | |
| Pages: 1 | |
| Term | Definition |
| perfection | The requirement necessary before a security interest attaches; achieved either by taking physical possession of the collateral or by proper registration of the security document, as prescribed by the provincial Personal Property Security Acts. |
| person | Includes a natural person (human being), a partnership, an unincorporated association, a corporation or legal person (artificial person), a co-operative society or organization, and the heirs, executors, liquidators, administrators, or other legal representatives of a person. |
| personal property | Property that is not real property; things moveable, also known as chattels. |
| Possessory Lien | Charge for an unpaid debt, enforced by having physical custody of the asset to which the lien applies. |
| postponement | To place after in order of importance; to put off to a later time. |
| PPSA | Personal Property Security Act: The system, in most common-law provinces, whereby a person is required to register any interest that he has in the property of another before the security is valid. The Registry can therefore be used if an institution is considering taking security on various assets or if a person is contemplating purchasing an item such as a vehicle and wants to ensure that he purchases it free and clear of any encumbrances. |
| preference | The payment of money or the granting of security by an insolvent debtor that benefits one or more creditors to the detriment of the other creditors. |
| Preferred Creditors | Those creditors, in the Bankruptcy and Insolvency Act specified in Section 136, that rank ahead of ordinary or unsecured creditors. Some preferred creditors are employees for wages, and a landlord for some specified rental arrears. |
| prescribed | The term given to the fact that the information is in a directive issued by the Superintendent of Bankruptcy. |
| priority | The order in which creditors are ranked for payment of claims provable under the Bankruptcy and Insolvency Act. |
| Pro Bono | Provided for free. |
| Pro Rata | To divide proportionately amongst people having a claim. |
| Promissory Note | An unconditional, written, signed promise to pay a certain amount of money on demand or at a certain date defined in the future. |
| Proof of Claim | A prescribed form that will be sent along with the notice of bankruptcy or notice of proposal. Creditors are required to fill out and return this form to the trustee, or to the administrator of the consumer proposal, in order to prove their claim. If a meeting of creditors is called, those creditors wishing to vote at the meeting must file their proof of claim with the trustee before the time set for the opening of the meeting. |
| property | Includes money, goods, things in action, land and every description of property, whether real or personal, legal or equitable, and whether situated in Canada or elsewhere, and includes obligations, easements and every description of estate, interest and profit, present or future, vested or contingent, in, arising out of or incident to property. |
| Property Claim | A claim for return of the property of a third party in the possession of the bankrupt at the date of bankruptcy. |
| proposal | Under the Bankruptcy and Insolvency Act there are two types of proposals that can be made. A proposal filed under Division I, is applicable to companies or individuals. This type of proposal was designed to facilitate corporate restructurings but is often used by individuals who do not qualify to file a consumer proposal. If the proposal is not accepted by creditors or is annulled by the Court it will result in a deemed assignment in bankruptcy. A proposal filed under Division II (also known as a consumer proposal), is a more simplified proposal that an individual (or individuals in some circumstances) can use to deal with their debts. A consumer proposal can only be filed by a debtor if they do not owe more than $75,000 (excluding mortgages on real property). One of the important features of a consumer proposal is that if the creditors do not accept the proposal, the person is not automatically bankrupt. |
| Provable Claims | All those debts of a bankrupt outstanding as of the date of the bankruptcy. |
| Proven Claims | Claims that have been filed in the proper manner with evidence to prove what is owed and subsequently accepted by the Trustee in Bankruptcy and used as the basis for the payment of dividends when there are monies to distribute. |
| proxy | Under the Bankruptcy and Insolvency Act a written statement can be made whereby a creditor appoints another person to act on his behalf in a creditors meeting and any other matters pertaining to that bankruptcy. |
| Purchase Money Security Interest | Purchase Money Security Interest (PMSI - pronounced "pimzee"): A security interest whereby a lender who provides the funds to finance the purchase of an asset obtains the first secured charge on the asset. This type of security interest is superior to other security interests under most provincial Personal Property Security Acts. |
| Glossary V2.0 | |