Financial Definitions

Bankruptcy

An individual or a company legally declares failure to pay the money they owe to their creditors. It may affect a professional job title and future chances to get credit.

Creditor

The person or company to whom money is owed. 

Individual Voluntary Arrangement

 

A legally binding agreement that runs for up to five years between you and your creditors. Wherein it is agreed some of your unsecured debts can be written off.

 

Insolvent

Someone who has insufficient funds to pay their debts.

Interim Order

Someone who proposes to follow an IVA may be able to apply to the courts for this order. If it is granted any further legal action on behalf of the creditors is prevented, without leave of the court.

Secured Creditor

A creditor who has legal charge over an asset (s).

Secured Debt

A debt taken out, where the creditor has security over the asset acquired with those funds. 

Unsecured Creditor

A creditor who does not hold any security.

Unsecured Debt

A debt for which no security has been granted.