Associates
Associates of individuals include family members, relatives, partners and their relatives, employees, employers, trustees in certain trust relationships, and companies which the individual controls. Associates of companies include other companies under common control.
Bailiff
A bailiff is someone authorised to collect a debt on behalf of a creditor. A creditor is someone you owe money to. There are different types of bailiffs - e.g. county court bailiffs, certificated bailiffs and private bailiffs who can be used to collect different types of debts. These include county court judgments, unpaid council tax, magistrates court fines, unpaid maintenance to the Child Support Agency and outstanding rent.
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.
Bankruptcy Order
The court order making an individual bankrupt (this replaces the concept of the receiving order and adjudication of bankruptcy in the old Act cases).
Bond
Insurance cover needed by a person who acts as an insolvency practitioner.
Category Two Disbursements
- File set up costs £18.00
- Archive storage £50.00
- Copying and printing 2.5 pence per sheet
- Pack 40 pence each.
- Late payment cost £30.00
County Court Judgement (CCJ)
An order issued by the court stating that a debtor must repay their debts. If a debtor has a number of CCJs then the court can combine the debts into an 'Administration Order', saying that the debtor must make a single payment every month, to be shared by their creditors.
Charging Order
Court order placing restrictions on the disposal of certain assets, such as property or securities, given after judgement and gives priority of payment over other creditors.
Creditor's Meeting
This is the meeting that allows the creditors to vote for or against the IVA proposal. 16-21 days notice needs to be given upon receipt of the debtors propsosal.
Credit Reference Agencies
Credit reference agencies hold information about your credit agreements (including any arrears), county court judgments (CCJs) and the electoral roll. A lender can only pass on information about your credit agreements with your consent. You usually give this consent when you sign the credit agreement. Failure to obtain your consent is a breach of the Data Protection Act. County court judgments will automatically be registered and are kept on record for a period of 6 years.
Creditor
The person or company to whom money is owed.
Debtor
A person who is in debt with someone / a company
Dividend
The number of pence the creditors will receive through an IVA for every pound they have lent the debtor.
Disposable income
The amount of money which an individual has available to spend on inessential items after essential bills have been met.
Endowment
An interest-only mortgage ultimately repaid by the proceeds of an endowment assurance policy which is assigned to the lender providing the mortgage. The policyholder pays the lender's interest only, for the term of the mortgage. The sum assured, which is payable on maturity or prior death of the policyholder, is used to repay the mortgage. Policies are usually with profits (or low cost endowment), unit linked or unitised with profits and sometimes this provides some additional capital for the policyholder after the lender has been repaid.
Escrow
An agreement that money or other objects of value be placed with a third party for safe keeping, pending the performance of some promised act by one of the parties to the agreement. It is common for home mortgage transactions to include an escrow agreement where the borrower adds a specified amount for taxes and hazard insurance to the regular monthly mortgage payment. The money goes into an escrow account out of which the lender pays the taxes and insurance when they come due.
Individual Voluntary Arrangement (IVA)
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.
Insolvency Practitioner (IP)
Person authorised by one of the chartered accountancy bodies, the Law Societies, The Insolvency Practitioners Association or the Department of Trade. The only person who may act as office holder in an insolvency proceeding.
Insolvent
The state of not being able to pay one's debts as they fall due or having an excess of liabilities over assets.
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.
IVA Proposal Document
The IVA Proposal Document is a summary of the main details of a Debtor's Statement of Affairs.
Loan To Value (LTV)
This is the percentage of a house value that lenders are prepared to lend against.
Official Receiver
The civil servant employed by the DTI to head the regional offices whose responsibilities cover bankruptcies and compulsory liquidations.
Preferential Creditor
Defined in Schedule 6 of The Insolvency Act 1986. Has priority when funds are distributed by a liquidator, administrative receiver or trustee in bankruptcy.
Proof of Debt
The document submitted in an insolvency to establish a creditor's claim. It may be informal (by e.g. letter) or in a prescribed form (in bankruptcy and compulsory liquidations).
Proxy
The authority given by a creditor or member to another person (proxy holder) to attend a meeting and speak and vote at a meeting on behalf of the creditor (principal) or member.
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.
Statement of Affairs
The listing of a debtor's assets and liabilities and sworn under oath by the debtor before a lawyer or Commissioner for Taking Oaths.
Unsecured Creditor
A creditor who does not hold any security.
Unsecured Debt
A debt for which no security has been granted.
Insolvency Practitioners at Money Debt and Credit Ltd act without any personal liability
Money Debt and Credit Ltd, Registered in England & Wales No.05588842.
Registered Office: 45 Clarendon Road, Watford WD17 1SZ