Arrears - being behind in payments, such as the monthly payment required during an IVA.
Assets - everything a person owns, such as a property and cash.
Bankruptcy - A legally declared inability of an individual or organisation to pay their creditors.
Creditor - A person or organisation to who money is owed or you borrow money from.
Debtor - One who owes debt to another.
Disposable income - All income remaining after all necessary expenses are made, such as mortgage, insurance, tax etc.
Insolvency - The inability of an individual or organisation to pay its debts when they become due.
Insolvency practitioner - A licensed specialist who advises on insolvency.
Insolvent - A person not able to pay debts when they become due.
Interim Order - Precludes bankruptcy and other legal proceedings whilst an IVA is being set up.
IVA - Individual Voluntary Arrangement or Agreement. An alternative to bankruptcy proceedings whereby an agreement is met between the debtor, and insolvency practitioner and the creditors.
IVA's - Individual Voluntary Arrangements.
Secured debt - Debt which is covered by specific assets in the event of a default.
Unsecured debt - Debt which is not covered by specific assets in the event of a default.