Debt Glossary

Assets Everything owned by a person or corporation which can be used for the payment of debts.

Bankruptcy A legal status for those who are not able to repay their debts.

Consolidation Loan   Refinance of outstanding debts into one new agreement, normally at a reduced interest rate or lower monthly repayment.

County Court Judgement (CCJ) – An order of a court against a debtor to pay money owed.

Creditors A creditor is someone to whom you owe money.

Debt Management Plan is a procedure under which a third party, usually a specialist debt management company will seek to broker an agreement between a person owing money and his or her creditors.

Independent Financial Adviser (IFA) A professional adviser on financial matters who is not employed by an institution selling financial services.

Individual Voluntary Arrangement (IVA) - An Individual Voluntary Arrangement is a proposal to creditors to pay off a proportion of the debts that are owed to them, they usually last between 2 and 5 years.

Insolvency - The inability of an individual or entity to pay its debts when they are due.

Remortgage Another loan/mortgage taken out by a borrower to replace another one secured on the same property.

Self-Help Remedies - ideas that might avoid the ongoing involvement of a third party in your financial affairs. Solutions that you can do yourself to help with your debts.