Glossary
A Licensed Insolvency Trustee is a person licensed by the federal government to help people with consumer proposals and bankruptcies.
A lien is when there is money owing on the vehicle. For example, if the original owner has not fully paid their car loan, there will be a lien on the vehicle. It is important to know if there is a lien so that you do not become responsible for paying off the original car loan.
A line of credit is the total amount of money you can borrow from a lender. This term is most often used for a loan agreement with a bank or other financial institution. For example, some people have personal lines of credit.
A loan agreement is a contract between a lender and a borrower, usually in writing. The lender agrees to give money to the borrower, and the borrower promises to pay the money back to the lender. The agreement includes the terms, which means it says what each person promises to do. For example, it says how much money the lender gives, when and how the borrower should repay the loan, the interest rate, and what happens if the borrower does not repay the loan.
A lump-sum payment is when you pay something in one single payment, instead of paying in many smaller payments over a period of time. For example, if you repay your entire car loan at once instead of making monthly payments, it is a lump sum payment.