Bankruptcy Glossary

We provide a comprehensive list of the common bankruptcy terms and explain their meaning in the table below.

AssetsAnything you own that can be realised towards paying your debts, e.g. house, car or savings.
Bankruptcy PetitionThe formal application to the court requesting that you be made bankrupt and the reasons why.
Bridging LoanA type of short-term loan typically taken out for a period of 2 weeks to 6 months pending the arrangement of larger or longer term financing or property selling.
Charging OrderA court order that gives the person/company you owe money to a legal charge over the interest in your home. This continues even after you have been discharged from your bankruptcy.
DischargeThe point where you are freed from the bankruptcy.
EstateAll property and assets belonging to you that your trustee can use to pay your creditors.
Income Payments Agreement (IPA)A written agreement between you and your trustee in bankruptcy to pay them part of your salary, wages or other form of income for an agreed period.
Income Payments Order (IPO)A court order to pay part of your wages, salary or income to your trustee in bankruptcy if you have excess income (these are uncommon).
Insolvency Practitioner (IP)An authorised licensed person who is able to accept insolvency appointments.
InterestThe money paid for the use of money lent or a share in a property.
Legal ChargeA form of security (e.g. a mortgage) to ensure payment of a debt.
Official Receiver (OR)An officer of the court. The OR is answerable to the courts for carrying out the courts’ orders and for fulfilling his/her duties under law.
Trustee in BankruptcyThis can either be the Official Receiver or an Insolvency Practitioner who takes control of your assets.
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Bankruptcy Glossary

Updated on 2016-09-28T18:16:23+01:00, by Kristian Stock.

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