creditor

A creditor is a person or business you owe money to. For example, this could be:

• the bank that gave you a mortgage loan
• the credit card company that lets you pay for things on credit
• your landlord, if you owe rent
• your utility company, if you pay for hydro or gas

credit

Credit is getting money, goods, or services now in exchange for your promise to pay them back later. Rent payments, phone bills, utility bills, loans, and money you borrow on a credit card or a line of credit, are common types of credit.

collateral

Collateral is an asset of yours that you use as security for a loan. This means that if you do not pay back the money you borrowed, your creditor can take the collateral as payment instead. For example, a house can be collateral for a mortgage, and a car can be collateral for a car loan.

code of ethics

A code of ethics is a set of rules that say what members of an organization or profession can do, and how they are supposed to behave and run their business. For example, a non-profit credit counsellor will protect a client’s privacy and not share information about a client without getting permission.

budget

A budget is a plan that says how you will spend the money you receive within a certain period of time. Usually, people create a monthly budget that shows the income they get in a month and all the things they need to, or want to, spend that money on in the month.

bankruptcy

Bankruptcy is a legal process. When you begin the bankruptcy process, it’s called filing for bankruptcy. When you file for bankruptcy someone called a Licensed Insolvency Trustee decides what you have to pay your creditors.

When you file for bankruptcy, you can keep some of your assets, such as furniture, pension funds, and registered...

balance

Balance, when talking about money, can be:

• the amount of money you have in a bank account, or
• the amount of money you owe to a creditor

For example, the balance on your credit card is the total amount of money you owe.

automatic discharge

An automatic discharge ends the bankruptcy process. It happens when you’re released from most of your unsecured debts without having to go to court.  

When someone is bankrupt for the first time, the discharge could happen as early as 9 months after you file for bankruptcy.

assets

Assets, sometimes called property, are money and anything you own that has value and can be exchanged for money. This can include cars, jewelry, land, and investments such as an RRSP or a pension plan. Assets can be used or sold to pay debts that you owe.

beyond a reasonable doubt

Before you can be found guilty of a criminal offence, the Crown must prove your guilt beyond a reasonable doubt. "Beyond a reasonable doubt" describes how sure a judge or jury must be to find you guilty of a criminal offence. Proving something "beyond a reasonable doubt" is much closer to absolute certainty than being able to show a balance of...