IVA and Debt Glossary

We have listed below a glossary of terms used within this web site and indeed terms used throughout the process of an IVA arrangement, Debt Management Plan or Bankruptcy.

Bankruptcy Order - The court order making an individual bankrupt.

Charging Order - A legal security, usually taken over a property.

Creditor - Someone owed money by a debtor.

Debtor - Someone who owes money to a creditor.

Debt Consolidation - restructuring your debts into a single affordable monthly repayment.

Debt Management Plan - This is an informal arrangement to help manage your debts. Ideal for debts below £10,000 and more than 4 creditors.

Individual Voluntary Arrangement (IVA) - See What is an IVA.

Insolvent - You are classed as Insolvent when you cannot afford to repay your bills. Insolvent is not the same as bankrupt.

Insolvency Practitioner (IP) - An Insolvency Practitioner is a legally recognised financial expert. They are usually specialist Chartered Accountants or Solicitors. It is recognised in Law, that only a recognised Insolvency Practitioner can arrange an insolvency procedure such as bankruptcy or an IVA agreement.

Proxy - The authority given by a creditor or member to another person to attend a meeting and speak and vote at a meeting on behalf of the creditor.

Secured Creditor - A creditor who holds security, such as a mortgage or legal charge on a property or other asset.

Security - A charge or mortgage over assets taken to secure payment of a debt.

Statutory Demand - A formal notice requiring payment of a debt.

Official Receiver - An officer of the court, and a civil servant, who is employed by the insolvency service.

IVA Helpline : 08000 935 695.