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Definition of Creditor
Lender of money.
Person or business that is owed money.
The requirement that a claim holder voting against a plan of reorganization
A lender or lending institution that offers financing and loans to a borrower, for the purpose of acquiring a commodity.
The creditor proof status of such things as life insurance, non-registered life insurance investments, life insurance RRSPs and life insurance RRIFs make these attractive products for high net worth individuals, professionals and business owners who may have creditor concerns. Under most circumstances the creditor proof rules of the different provincial insurance acts take priority over the federal bankruptcy rules.
Purchases of goods or services from suppliers on credit to whom the debt is not yet paid. Or a
Rule in bankruptcy proceedings whereby senior creditors are required to be paid in full
Amounts a company owes to creditors.
The sum of cash, accounts receivable, and short-term marketable
A report issued to a company’s shareholders, creditors, and regulatory
creditors exchange the debt of one defaulting borrower for the debt of another
This is the person who benefits from the terms of a trust, a will, an RRSP, a RRIF, a LIF, an annuity or a life insurance policy. In relation to RRSP's, RRIF's, LIF's, Annuities and of course life insurance, if the beneficiary is a spouse, parent, offspring or grand-child, they are considered to be a preferred beneficiary. If the insured has named a preferred beneficiary, the death benefit is invariably protected from creditors. There have been some court challenges of this right of protection but so far they have been unsuccessful. See "creditor Protection" below. A beneficiary under the age of 18 must be represented by an individual guardian over the age of 18 or a public official who represents minors generally. A policy owner may, in the designation of a beneficiary, appoint someone to act as trustee for a minor. Death benefits are not subject to income taxes. If you make your beneficiary your estate, the death benefit will be included in your assets for probate. Probate filing fees are currently $14 per thousand of estate value in British Columbia and $15 per thousand of estate value in Ontario.
The person or party designated to receive proceeds entitled by a benefit. Payment of a benefit is triggered by an event. In the case of credit insurance, the beneficiary will always be the creditor.
A business that has terminated with a loss to creditors.
Cash receipts and payments involving
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for business purposes.
This is the person designated to receive the death benefit of a life insurance policy if the primary beneficiary dies before the life insured. This is a consideration when husband and wife make each other the beneficiary of their coverage. Should they both die in the same car accident or plane crash, the death benefits would go to each others estate and creditor claims could be made against them. Particularly if minor children could be survivors, then a trustee contingent beneficiary should be named.
The ability of the bankruptcy court to confirm a plan of reorganization over the objections of
Critical Illness Insurance (Credit Insurance)
Coverage that provides a lump-sum payment should you become seriously ill with a specified illness. The payment is made to your creditors to pay off your debt owing.
Amounts due and payable by the business within a period of 12 months, e.g. bank overdraft, creditors and accruals.
Current assets divided by current liabilities. This ratio indicates the extent to which the claims of short-term creditors are covered by assets expected to be converted to cash in the near future.
An unsecured bond whose holder has the claim of a general creditor on all assets of the
Indicator of financial leverage. Compares assets provided by creditors to assets provided
Interest payment plus repayments of principal to creditors, that is, retirement of debt.
a discipline in which historical, monetary
A feature of a debt or credit agreement that is designed to protect the lender or creditor. It is common to characterize covenants as either positive or negative covenants.
A court-ordered authorization to shift employee wages to a creditor.
Job Loss Insurance (Credit Insurance)
Coverage that can pay down your debt should you become involuntarily unemployed. The payment is made to your creditors to reduce your debt owing.
Measures of the relative contribution of stockholders and creditors, and of the firm's ability
What a company owes to its creditors. In other words, debts.
When a firm's business is terminated, assets are sold, proceeds pay creditors and any leftovers
Net proceeds that would be realized by selling the firm’s assets and paying off its creditors.
Person appointed by unsecured creditors in the United Kingdom to oversee the sale of an
A characterization of the magnitude of a financial statement item's effect on a
Mortgage (Credit Insurance)
An agreement between a creditor and a borrower, where the creditor has loaned an amount to the borrower for purposes of purchasing a loan secured by a home.
Commonly sold in the form of reducing term life insurance by lending institutions, this is life insurance with a death benefit reducing to zero over a specific period of time, usually 20 to 25 years. In most instances, the cost of coverage remains level, while the death benefit continues to decline. Re-stated, the cost of this kind of insurance is actually increasing since less death benefit is paid as the outstanding mortgage balance decreases while the cost remains the same. Lending institutions are the most popular sources for this kind of coverage because it is usually sold during the purchase of a new mortgage. The untrained institution mortgage sales person often gives the impression that this is the only place mortgage insurance can be purchased but it is more efficiently purchased at a lower cost and with more flexibility, directly from traditional life insurance companies. No matter where it is purchased, the reducing term insurance death benefit reduces over a set period of years. Most consumers are up-sizing their residences, not down-sizing, so it is likely that more coverage is required as years pass, rather than less coverage.
Premium (Credit Insurance)
Annual or monthly amounts payable, by a client, for a selected insurance coverage to insure debt obligations to their creditors are protected.
A bankruptcy in which a debtor and its creditors pre-negotiate a plan or
RATIO OF DEBT TO STOCKHOLDERS’ EQUITY
A ratio that shows which group—creditors or stockholders—has the biggest stake in or the most control of a company:
A bankruptcy practitioner appointed by secured creditors in the United Kingdom to oversee the
Sometimes called seg funds, segregated funds are the life insurance industry equivalent to a mutual fund with some differences.The term "Mutual Fund" is often used generically, to cover a wide variety of funds where the investment capital from a large number of investors is "pooled" together and invested into specific stocks, bonds, mortgages, etc.
All parties that have an interest, financial or otherwise, in a firm - stockholders, creditors,
Strike Insurance (Credit Insurance)
Coverage that can pay down your debt should you become unemployed due to a legal strike in your place of work. The payment is made to your creditors to reduce your debt owing.
Subordinated debenture bond
An unsecured bond that ranks after secured debt, after debenture bonds, and
Terminal Illness Insurance (Credit Insurance)
Coverage that provides a lump-sum payment should you become terminally ill. The payment is made to your creditors to pay off your debt owing.
Property free and clear of all liens (creditors' secured claims).
Waiting Period (Credit Insurance)
A specific time that must pass following the onset of a covered disability before any benefits will be paid under a creditor disability policy. (Also known as an elimination period).
Current assets less current liabilities. Money that revolves in the business as part of the process of buying, making and selling goods and services, particularly in relation to debtors, creditors, inventory and bank.
Informal arrangement between a borrower and creditors.
Agreement between a company and its creditors establishing the steps the company must take to avoid bankruptcy.
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