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Description
Flashcards by Dawn S_akura, updated more than 1 year ago
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Created by Dawn S_akura
over 7 years ago
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| Question | Answer |
| Administration order | a repayment plan arranged by the county courts in England, Wales and Northern Ireland for people with -less than £5, 000 in insecured debt -and at least one county court judgment [CCJ] against them. They apply to the court to have an administration order issued, then pay what the court decides they can afford directly to the court each month , and the court make the repayments to their cerditors |
| Bankruptcy | a situation in which a person cannot afford to pay their debts and is the subject of a court order that shares out their assets between their creditors |
| Consolidation loan | a loan used to pay off a number of different debts, making then only one payment to make each month, top the one loan company |
| County Court Judgment [CCJ] | in England and Wales , a judgment issued by the county court to a person who does not respond to court action from a person or organisation to which they owe money. It affirms that the money is owed |
| Creditor | a person or organisation to which someone owes money |
| Debt Management Company [DMC] | an organisation to which a person in debt ( debtor) pays what they can afford each month. this then deals with the organisations owed money (creditors) |
| Debt Management Plan | a detailed plan drawn up by a debt management company [DMC] and sent to an individual's creditors (entities they owe money). It sets out affordable monthly payments shared between the creditors |
| Debt Payment Programme [DPP] | a Scottish government-run programme similar to a debt management plan |
| Debt Relief Order [DRO] | an order a person in specific conditions can apply for if they cannot afford to pay off their debts. It generally lasts one year during which none of the people owed money can take action, and after which the listed debts are cleared. Granted by the Insolvency services, it works out cheaper than declaring bankruptcy |
| Debtor | a person in debt to an individual or organisation (creditor) |
| Guarantor | someone who undertakes to repay a financial obligation if the person who took on the obligation in the first place cannot or does not want to repay it. e.g. they may agree to pay rent on someone else's behalf |
| Individual Voluntary Arrangement [IVA] | a formal alternative to bankruptcy comprising a contractual arrangement with those owed money |
| Insolvency | a situation in which a person cannot repay what they owe because their debts are greater than their assets |
| Minimum Asset Process [MAP] | available in Scotland and similar to a DRO. =the route into bankruptcy for people with less than £2, 000 in assets |
| Money Advice Service | a service set up by the government to help people make informed financial decisions |
| Recession | a period of at least six months when the amount of goods and services the country is producing is shrinking |
| Sequestration | the term for bankruptcy in Scotland ,which applies to those -who owe more than £1 ,500 -have not be bankrupt in the last 5years -have had CCJ for payment against them |
| Trust deed | available in Scotland and similar to an IVA. an insolvency practitioner helps people who are insolvent to make affordable repayments, and after three years any outstanding debt is written off |
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