Glossary of terms


A process which legally discharges most unsecured debts.

Consumer Proposal

A formal offering, usually less than 100 cents on the dollar, to settle outstanding debts.


A person or company to whom you owe money.

Creditor Negotiation

Negotiating repayment plans or settlement offers.

Debt Pooling/Consolidation

Adding all unsecured debt together and using the total to calculate the repayment or settlement offer.


A person or company who owes money.


When a creditor obtains a judgement against you, they can attach to your wages, requiring your employer to forward payment directly to them. Canada Revenue Agency does not need a judgement to garnishee wages.


The act of being insolvent – being unable to meet your obligations as they become due.


A process under the Bankruptcy and Insolvency Act where creditors and debtors can negotiate disputed matters regarding payment ability.

Orderly Payment of Debts

A program through Money Mentors which consolidates all debts. You make one monthly payment to Money Mentors and they pay your creditors 100 cents on the dollar plus judgement interest of 5%.

Unsecured Creditor

A person or company to whom you owe money, who does not hold any collateral as security for the loan, (ie. Bank holds house as security; bank holds car as security for car loan, etc.).