Mortgage in Arrears | Mortgage Arrears Advice Bristol

A	Annulment An Annulment is the cancellation of a bankruptcy order that has been made by the court. The court aims to return an individual or company into a position before the order was made.
	Assets Assets are anything (car, home, commercial property, furniture, shares, cash etc) that belongs to an individual person or company and can be used to pay off debts.
B	Bankruptcy A person or organisation are legally declared bankrupt by the court when they are no longer able to pay their debts. Creditors (those who are owed money by the debtor - see below) can declare somebody (or organisation) bankrupt to force them to pay some of the money that is owed. It is usually the case that many people or firms that are in serious amounts of debt start their own bankruptcy proceedings.
	Bankruptcy Order An order of Court which will make a person bankrupt - it is made based on the creditors or debtors position
	Bankruptcy Petition A bankruptcy petition notifies the total of the debt that cannot be paid, the terms upon which the inabilility to pay has been made, and lists the reason(s) why the bankruptcy order is needed. It is a formal document which is submitted to the court to begin bankruptcy proceedings.
C	Company Voluntary Arrangement (CVA) A CVA scheme is put together under the control of a supervisor and usually requires little involvement by a court; it is a voluntary agreement where a nominated person (usually an insolvency practitioner) sorts and plans a reorganisation and presents this to other owners of the company (directors, shareholders) or creditors for agreement.
	Creditors Creditors are an entity (person, company or organisation) that lends credit by giving another entity permission to borrow money (usually for products or services) to be paid back at a later date. Creditors will ultimately decide whether to accept an IVA or CVA during a creditors meeting (see below)
	Creditors Meeting During a Creditors meeting all the creditors can vote in person (or by proxy) on whether to accept (or reject) the proposals of the IVA or CVA. If 75% or more of the creditors accept the proposal, then the IVA or CVA will be approved. If a creditor fails to attend the creditors meeting, or did not vote or rejected the proposals by voting against them, they are still bound by the terms of the agreement.
D	Debtor If you are the one in debt (i.e owes money to someone else) then the debtor is you - though debtors can also be commercial entities.
	Discharge If you have been "discharged" then this means you are no longer considered "bankrupt" by the court.
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I	Individual Voluntary Arrangement An IVA (short for Individual Voluntary Agreement) is a procedure whereby the person comes to an arrangement with their creditors in how their debt will be discharged. An IVA requires the approval of the court and is under control of a supervisor and insolvency practitioner who sorts out an arrangement with creditors in how the debt will be paid off. Do note that in an IVA ALL of the assets you won have to be recorded.
	Insolvency If you have no further sufficient assets to pay debts then you or your company have entered into Insolvency - you have become insolvent.
	Insolvency Act 1986 The Insolvency Act 1986 is a primary piece of legislation governing insolvency law and the practice of.
	Insolvency Practitioner (IP) An Insolvency Practitioner (IP) is a person who is an expert in IVA's and who advises those who are insolvent how to sort out their financial difficulties and deal with being made (possibly) bankrupt, IVA's or other liquidation procedures. Insolvency Practitioners will be the ones to present your IVA case to your creditors.
	Insolvent See insolvency.
	Interim Order An individual who intends to propose an IVA to his or her creditors can apply to the court for an interim order which when granted, stops the threat of bankruptcy and other legal proceedings whilst the interim order is in force (usually for a defined length of time, it is not usually an ongoing arrangement).
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L	Legal Charge A legal charge is a type of security to ensure that a debt is paid
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N	Nominee Usually the nominee is the insolvency practitioner and is usually chosen by the debtor to create and report on the proposals set out in an IVA.
O	Official Receiver The court appointed trustee in Bankruptcy
P	Preferential Creditor A preferential creditor (usually staff, employees, HMRC) who are entitled to receive certain payments in priority over (other) unsecured creditors.
	Proof of Debt Proof of debt form's (a type of statutory form) are supplied by an appointed insolvency practitioner to the creditor who completes it to advise how much they are owed.
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S	Secured Creditor A secured creditor is a creditor who holds security, such as a mortgage, has rights superior to those of an unsecured creditor. Secured debts are not permitted to be entered into an IVA.
	Statement of Affairs A Statement of Affairs details the assets (and any respective liabilities) of the person or entity involved and this has to be completed before the IVA starts. A Statement of Affairs is taken under oath and filled out by the debtor when they (or their entity) becomes insolvent.
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