Debt Consolidation Glossary
- Administration order
An order made in a county court to arrange and administer the payment of debts by an individual
Anything that belongs to the debtor that may be used to pay their debts.
Bankruptcy restrictions order or undertaking
A bankrupt who has been dishonest, or who is in some other way to blame for their bankruptcy, may have a court order made against them or give an undertaking to the Secretary of State which will mean that bankruptcy restrictions continue to apply after discharge for a period of between two to fifteen years.
Security interest taken over property by a creditor to protect against non-payment of a debt, such as a mortgage or secured loan.
Someone owed money by a bankrupt or individual.
A person who conducts the affairs of a limited company.
A procedure whereby a person has a court order made against them or gives an undertaking to the Secretary of State which makes it an offence for that person to be involved in the management or directorship of a company for the period specified in the order (unless leave has been granted by the court).
Any sum distributed to unsecured creditors in an insolvency.
A charge held over specific assets. The debtor cannot sell the assets without the consent of the secured creditor or repaying the amount secured by the charge.
An agreement to pay a debt owed by a third party. It must be evidenced in writing for it to be enforceable.
An Insolvency Practitioner who carries out the preparatory work for a voluntary arrangement, before its implementation.
An officer of the court and civil servant, who deals with bankruptcies and compulsory company liquidations.
An individual or corporation.
A formal application made to a court.
A creditor who is entitled to receive certain payments in priority to floating charge holders and other unsecured creditors. These creditors include occupational pension schemes and employees.
Instead of attending a meeting, a person can appoint someone to go and vote in their place - a 'proxy'.
Form that must be completed if a creditor wishes someone else to represent him or her at a creditors' meeting and vote on his or her behalf.
Realising an asset means selling it or disposing of it to raise money, for example to sell an insolvent's assets and obtain the proceeds.
The commonly used name for an administrative receiver. The term can also mean a person appointed by the court or with the power to receive the rents and profits of property. Receivers who are not administrative receivers do not need to be insolvency practitioners.
The process by which the Official Receiver or an insolvency practitioner is discharged from the liabilities of office as trustee/liquidator or administrator.
Sec ured creditor
A creditor who holds security, such as a mortgage, over a person's assets or property for money owed.
Statement of affairs
A document sworn under oath, completed by a bankrupt, company officer or director(s), stating the assets and giving details of debts and creditors.
An Insolvency Practitioner appointed to supervise the carrying out of a company voluntary arrangement.
A creditor who does not hold security (such as a mortgage) for money owed. Some unsecured creditors may also be preferential creditors.