Insolvency Statistics in Canada—2018 ( Glossary)

Glossary

Bankruptcy:
The state of a consumer or a business that has made an assignment in bankruptcy or against whom a bankruptcy order has been made.
Business:
Any commercial entity or organization other than an individual, or an individual who has incurred 50% or more of total liabilities as a result of operating a business.
Census Metropolitan Area (CMA):
Each area consists of one or more adjacent municipalities situated around a major urban core. To form a census metropolitan area, the urban core must have a population of at least 100,000. Refer to Statistics Canada's geographical definitions of CMAs.
Consumer:
An individual with more than 50% of total liabilities related to consumer goods and services.
Dividends:
Monies paid to creditors by trustees during or at the end of a bankruptcy or a proposal.
Economic Region (ER):
Statistics Canada's standard geographical units created for analysis of regional economic activity. Refer to Economic Region.
Insolvency:
In the context of this report, a bankruptcy or a proposal.
North American Industry Classification System (NAICS):
Industry classification system that classifies economic units that have similar production processes in the same industry. This is a supply-based or production-oriented economic concept.
Proposal:
An offer to creditors to settle debts under conditions other than existing terms. A proposal is a formal agreement under the Bankruptcy and Insolvency Act.
Receivership:
Action against an insolvent person or a bankrupt where a secured creditor takes steps to enforce its security through seizure of assets. The Court-appointed receiver is an officer of the court who acts in a fiduciary capacity with respect to all interested parties. The privately appointed receiver derives his/her powers and authority wholly from the security agreement.
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