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Debt Counselling
Credit Negotiations
Consumer Proposals
Personal Bankruptcy
Glossary of Terms
 
Bankruptcy
A process which legally discharges most unsecured debts.

Consumer Proposal
A formal offering, usually less than 100 cents on the dollar, to settle outstanding debts.

Creditor
A person or company to whom you owe money.

Creditor Negotiation
Negotiating repayment plans or settlement offers.

Debt Pooling/Consolidation
Adding all unsecured debt together and using the total to calculate the repayment or settlement offer.

Debtor
A person or company who owes money.

Garnishment
When a creditor obtains a judgement against you, they can attach to your wages, requiring your employer to forward payment directly to them. Canada Customs and Revenue Agency does not need a judgement to garnishee wages.

Insolvency
The act of being insolvent - being unable to meet your obligations as they become due.

Mediation
A process under the Bankruptcy and Insolvency Act where creditors and debtors can negotiate disputed matters regarding payment ability.

Orderly Payment of Debts
A program through Credit Counselling Services of Alberta which consolidates all debts. You make one monthly payment to Credit Counselling Services and they pay your creditors 100 cents on the dollar plus judgement interest of 5%.

Unsecured Creditor
A person or company to whom you owe money, who does not hold any collateral as security for the loan, (ie. Mortgage holds house as security; bank holds car as security for car loan, etc.).

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Copyright 2011 - Smith Cageorge Bailey, Inc.


Dealing with Financial Difficulties
Evaluating Financial Difficulty
Consumer Proposals
Personal Bankruptcy
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