Collections and Recovery

Bankruptcy is a formal insolvency process used when a borrower cannot meet debt obligations under the normal repayment path.

Charge-off is a serious non-payment stage where a lender treats an account as unlikely to be collected as agreed.

A collection account is a report entry showing that a debt has moved into collections activity.

A collection agency is an organization that tries to recover overdue debts on behalf of a creditor or after the debt has been placed or assigned.

A consumer proposal is a formal Canadian insolvency process that lets an individual offer creditors a structured repayment compromise.

A debt management plan is a structured repayment arrangement used to organize unsecured debt through a guided plan.

Debt settlement is an arrangement to resolve a debt for less than the full claimed balance through negotiated compromise.

Garnishment is a legal process that directs part of a person's income or funds toward debt recovery.

A licensed insolvency trustee is the Canadian professional authorized to administer formal insolvency processes such as bankruptcies and consumer proposals.

A payment arrangement is a negotiated plan for handling overdue amounts after the borrower has fallen behind.

Rehabilitation after insolvency is the process of rebuilding credit and financial stability after a formal insolvency event.

Repossession is the lender or secured party taking back pledged property after serious default.

Write-off is a late-stage lender treatment showing that an account is no longer expected to be collected as originally agreed.