Arrears
Amount overdue as a result of being behind payments.
Asset
Something that has earning potential or value.
Attachment (Scottish Bankruptcy)
Goods can be taken from the garage, garden shed, and driveway.
Attachment of Earnings
This forces the
debtor's employer to make deductions from the
debtor's earnings and pay them to the
creditor.
Bailiffs
Bailiffs are officers of the court, who can in certain circumstances be used by creditors to enforce judgments by collecting debts and repossessing homes or goods.
Bankruptcy
Bankruptcy is legal procedure for dealing with debts when you cannot pay.
Budget (Financial Statement)
A Budget is a document listing details of income and expenditure.
Budget Deficit
The amount on your
budget by which your expenditure exceeds your income before allowing for offers of payment on
non-priority debts.
Budget Surplus
The amount on your
budget by which your income exceeds your expenditure before allowing for offers of payments on
non-priority debts.
Budgeting
The process of managing outgoings so that they don't exceed income.
Charge for Payment (Scottish Bankruptcy)
Full amount outstanding requested to be paid in 14 days.
Charging Order
This secures the debt on your home usually with conditions concerning payments. A charging order has the effect of converting an
unsecured debt into a secured one.
Contractual Payment
Payment agreed in the original contract with the creditor.
County Court Claim
This secures the debt on your home usually with conditions concerning payments. A charging order has the effect of converting an
unsecured debt into a secured one.
County Court Judgment
A County Court Judgment (CCJ) gives details of the court's decision of a
creditor's attempt to recover a debt in a civil court.
Credit Rating
A credit scoring systems which give points to items of information given on your application form when applying for credit.
Creditor
Someone to whom you owe money.
Debt Consolidation
This is taking a new loan and using the proceeds to pay off several smaller debts.
Debt Management Plan
This is a repayment scheme administered by Consumer Credit Counselling Service for people unable to pay their
creditors the full contractual payments.
Debtor
Someone who owes money.
Default Notice
This must be issued by
creditors in respect of debts covered by the Consumer Credit Act 1974 before any further action is taken.
Direct Debit
The account holder instructs the bank or building society to comply with requests from a third party to make a series of payments to them.
Downshifting
Making major changes to one's lifestyle caused by accepting a reduced level of income.
Equity
The difference between the market value of your house and the amount outstanding on your mortgage.
Exceptional Attachment (Scottish Bankruptcy)
Goods can be taken from the home, garage, garden shed, and driveway.
Hire Purchase
An agreement where goods are hired for an agreed period, at the end of which the hirer has the option to purchase.
Individual Voluntary Arrangement (IVA)
A means of protecting yourself from your
creditors by entering into a legally binding agreement supervised by an Insolvency Practitioner.
Insolvency Practitioner
In the United Kingdom an Insolvency Practitioner is a person specialising in formal Insolvency cases. They are either authorised by the Secretary of State for Trade and Industry or licensed by a recognised professional body.
Irregular Bill
An occasional expense e.g. TV licence, car tax etcetera
Joint & Several liability
If two or more parties enter into a credit agreement they will each be liable for repaying the whole amount borrowed.
Late Fees
Fees added to the amount owed by the
debtor when payments are late and where such fees are allowed for in the original contract.
Maximising Income
Increasing your income.
Monthly Expenses
The amount of money needed each month to pay your rent or mortgage, your gas, electricity and water, your food and other living expenses.
Non-Priority Debts
Non-Priority Debts are those where the
creditor cannot deprive you of liberty, home or essential goods and services.
Official Receiver
An officer of the court who deals with bankruptcies.
Priority Debts
Priority debts are those where non-payment gives the
creditor the right to deprive you of your liberty,home or essential goods and services.
Repossession
Process by which a
creditor with a loan secured on house or goods (e.g. car) can take possession if you do not maintain agreed payments.
Secured Loan
Where the lender has a legal charge on assets (usually a house) giving rights of
repossession over that asset if payments on the loan are not maintained.
Standing Order
This is an instruction signed by an account holder ordering a Bank or Building Society to make regular payments from a account of specified amounts on specified dates.
Unsecured Loan
A loan that is not secured on property or goods.
Warrant of Execution
This is issued by the County Court at the
creditor's request allowing the court bailiffs to attempt to take and sell goods and use the proceeds to pay the debt.
Welfare Benefits
State funded allowances paid to those in certain defined circumstances including low income and disability.