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Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
62% - Often


Synonyms:default, exhaustion, loss, nonpayment, overdrawn
Acronyms &
Filed Under: financial-banking
Tags: bankruptcy, credit

Definition of bankruptcy (BK)

bankruptcy (BK)
1. The financial status of an individual or firm that has been legally judged either to have debts that exceed assets or to be unable to pay bills. The individual or firm can declare bankruptcy voluntarily or be pressed by creditors to do so. The debtor's remaining property and assets are then administered for the creditors or distributed among them.

Related Terms and Acronyms:

  • liquidation   To convert into cash.
  • non-dischargeable debt   Debt that cannot be eliminated in bankruptcy such as Federal taxes.
  • probate sale   Sale of property after the death of the owner, supervised by a court, with proceeds divided among creditors and heirs.
  • receivership   A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.
  • refinance   To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
  • repayment plan   Modification of an existing loan after the borrower has been delinquent. Often used when the borrower misses payments but the lender does not foreclose.
  • repossession   The taking back of property after a borrower has stopped making payments.
  • secured credit card   A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.
  • solvency   To be able to meet one's financial liabilities in the short or long term.
  • tax sale   A government sale of property to recover unpaid taxes.

More Related Terms and Acronyms

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