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Insolvency Terms & their meanings
- Annulment
- Cancellation
- Assets
- Anything of any value that may be used to pay your debts
- Bankruptcy order
- A court order making you bankrupt
- Bankruptcy petition
- A request made to the court for you to be made bankrupt. This may be made either by you (debtor) or by a creditor. It will also give the reasons why a request has been made.
- Charging order
- This is an order made by the court which gives the trustee, a legal charge on your interest in your home. This continues even after you are discharged from bankruptcy
- Creditor
- Someone you owe money to
- Debts
- Money you owe
- Discharge
- Freed from bankruptcy
- Estate
- Your property and/or assets which your trustee can use to pay your creditors
- Income payments order
- The court may order you to pay part of your salary or other income to the trustee if your income is more than you and your family need to live on
- Insolvency practitioner
- A person, usually a solicitors or an accountant, who specialises in insolvency. They will be authorised by the Secretary of State or by one of a number of recognised professional bodies.
- Interest
- A right to, or a share in, a property
- Legal charge
- Security (mortgage) to ensure payment of a debt
- Preferential Creditor
- A creditor in bankruptcy proceedings who is entitled to receive certain payments in priority to other unsecured creditors. These creditors include occupational pension schemes and employees.
- Proxy
- A person can appoint someone to attend meetings and vote in their place – a proxy
- Trustee
- The trustee is either the Official Receiver or an insolvency practitioner and they will take control of your assets. The trustee’s main duty is to sell these assets and share the money amongst your creditors.
- Unsecured Creditor
- A creditor who does not hold security (mortgage) for the money owed. Some unsecured creditors may be preferential creditors.
