If accepted by the Licensed Insolvency Trustee, the proof of claim is used to determine how much is paid to the creditor.
In Alberta, Saskatchewan or Nova Scotia, a debtor can voluntarily seek out a legal proceeding (also known as an orderly payment of debt program) to help make their payments.
The order will consolidate all debts and determine an amount that the debtor must pay to the Court on a periodic basis.
An interim receiver is a Licensed Insolvency Trustee appointed by the court to safeguard the assets of a debtor and perform other functions the court may order.
This appointment is made after an application for a bankruptcy order has been filed, but before the bankruptcy is ordered by the court.
A notice of intention is a legal document stating that the debtor intends to file a proposal to creditors.
Once filed, lawsuits by creditors are stayed and garnishments against the debtor's salary stop.
The Court may impose certain conditions that must be met before a person's discharge becomes absolute.
For example, the Court may require the bankrupt to pay an amount to the Licensed Insolvency Trustee for distribution to creditors.
Upon receipt of the payments, the Court will make payments to the creditors on behalf of the debtor.
In most cases, the period of time of the program set by the court is three years.
The receiver may also sell a company's assets and parts of a company—or even the whole company—to recover the money owed.