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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Business Bankruptcy


Synonyms:Chapter 11, default, liquidation, loss, nonpayment
Filed Under: financial-banking
Tags: banking, bankruptcy
 

Definition of business bankruptcy

business bankruptcy
1. This type of bankruptcy occurs when business related debts cannot be paid and the business or individual defaults or files for bankruptcy. The debtor can be a business or an individual involved in a business.

Related Terms and Acronyms:

  • asset case   A bankruptcy proceeding where there are non-exempt assets that might be accessible to pay creditor's claims.
  • bad debt   Money that cannot be collected is considered bad debt. Businesses can deduct bad debts under certain circumstances. If a bad debt is personal, it can also be deducted in some instances as a short-term capital loss.
  • bankruptcy (BK)   A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
  • bankruptcy trustee   A private individual or corporation appointed to undertake bankruptcy proceedings for a individual or corporation.
  • business (busn)   A company, either for-profit or non-profit.
  • debtor   A person who has filed a petition for relief under the bankruptcy laws.
  • fiduciary   An individual, company, or association that manages assets for another party. Fiduciaries include executors of wills and estates, trustees, receivers in bankruptcy, and those responsible for managing the finances of a minor.
  • fiduciary duty   A requirement that someone in a position of trust, such as a banker, real-estate agent, or title agent, must act in good faith and trust on behalf of a client.
  • non-dischargeable debt   Debt that cannot be eliminated in bankruptcy such as Federal taxes.
  • receivership   A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.

More Related Terms and Acronyms

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