| |
Administrator
An Insolvency Practitioner (IP) appointed by the court under an administration order or by a floating charge holder or by the company or its directors filing the requisite notice at court.
Annulment
Cancellation normally of a bankruptcy
Assets
Anything that belongs to the debtor that may be used to pay debts.
Bankruptcy restrictions order or undertaking
Procedure whereby a bankrupt who has been dishonest or in some other way to blame for their bankruptcy may have a court order made against them or give an undertaking to the Secretary of State which will mean that bankruptcy restrictions continue to apply after discharge for a period of between two and fifteen years.
Charge
Security interest taken over property by a creditor to protect against non-payment of a debt (such as a mortgage).
Compulsory Liquidation
Winding up of a company after a petition to the court normally by a creditor.
Creditor
Someone owed money by a bankrupt or company.
Debenture
A document in writing usually under seal issued as evidence of debt or the granting of security for a loan of a fixed sum at interest or both. The term is often used in relation to loans (usually from banks) secured by charges, including floating charges over companies assets.
Director
A person who conducts the affairs of a company.
Dividend
Any sum distributed to unsecured creditor in an insolvency.
Fixed charge
A charge held over specific assets. The debtor cannot sell the assets without the consent of the secured creditor or paying the amount secured by the charge.
Floating charge
A charge held over general assets of a company, the assets may change such as stock and the company may use the assets without the consent of the secured creditor until the charge crystallises or becomes fixed. Crystallisation occurs upon the appointment of an administrative receiver, on the presentation of a winding up petition or as otherwise provided for in the document creating the charge.
Guarantee
An agreement to pay a debt owed by a third party it must be evidenced in writing for it to be enforceable.
Insolvency Practitioner (IP)
An authorised person who specialises in insolvency, usually an accountant or solicitor. They are authorised by either the Secretary of State or by one of a number of recognised professional bodies.
Liquidation
Applies to companies or partnerships it involves the realisation and distribution of the assets and usually the closing down of the business. There are three types of liquidation, compulsory, creditors voluntary and members voluntary.
Liquidator
The Official Receiver or an Insolvency Practitioner appointed to administer the liquidation of a company or partnership.
Member
A person who has agreed to be and is registered as a shareholder of a limited company.
Nominee
An IP who carries out the preparatory work for a voluntary arrangement.
Official Receiver
An officer of the court and civil servant employed by The Insolvency Service, who deals with bankruptcies and compulsory company liquidations.
Petition
A formal application made to the court.
Preferential Creditor
A creditor who is entitled to receive certain payments in priority to floating charge holders and other unsecured creditors. These creditors include occupational pension scheme and employees.
Proof of Debt
A statutory form, supplied by the liquidator/trustee, completed by a creditor.
Proxy Form
Form that must be completed if a creditor wishes someone else to represent him/her at a creditors' meeting and vote on his/her behalf.
Realise
Realising an asset means to sell or dispose of it to raise money.
Receiver
The commonly used name for an administrative receiver. The term can also mean a person appointed by the court or with the power to receive the rents or profits of property.
Receivership
The commonly used term for a company in administrative receivership.
Secretary of State
The Secretary of State for the Department of Trade and Industry.
Secured Creditor
A creditor who holds security, such as a mortgage, over a person's assets for money owed.
Statement of Affairs
A document sworn under oath, completed by the bankrupt, company officer or director stating the assets, debts and creditors.
Statutory demand
A written demand served upon an individual or company prior to winding up or bankruptcy proceedings as a way of trying to prove they are unable to meet their debts as they fall due.
Supervisor
An IP appointed to supervise the carrying out of a voluntary arrangement.
Trustee
A trustee in bankruptcy is either the Official Receiver or an IP who takes control of your assets. The Trustee's main duties are to sell these assets and share the money amongst the creditors.
Unsecured creditor
A creditor who does not hold security for money owed.
Voluntary Liquidation
A method of liquidation not involving the courts or the Official Receiver. There are two types of voluntary liquidation - members' voluntary liquidation for solvent companies and creditors' voluntary for insolvent companies.
Winding up Order
Order of a court, usually based on a creditor's petition, for the compulsory winding up or liquidation of a company or partnership. |
