Deemed Trust: Canada Debt .ca defines Deemed Trust

Bankruptcy Term Deemed Trust

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Canada Debt has the definition to the bankruptcy and debt term Deemed Trust. Finding answers to terms such as Deemed Trust can be difficult, especially if there is more than one definition which is why we have created a page dedicated to financial terms dealing exclusively with debt. Deemed Trust in financial terms means...

In debt and bankruptcy terms, the phrase / term 'Deemed Trust' is used as follows:

A trust that is established by statute to be in effect even though there may not be any actual asset or monies held in that trust. For example, Revenue Canada in a bankruptcy or insolvency situation takes the position that it has a deemed trust covering source deductions that they claim rank even ahead of certain secured creditors.