We provide a comprehensive list of the common bankruptcy terms and explain their meaning in the table below.
| Term | Definition |
|---|---|
| Annulment | Cancellation. |
| Assets | Anything you own that can be realised towards paying your debts, e.g. house, car or savings. |
| Bankruptcy Petition | The formal application to the court requesting that you be made bankrupt and the reasons why. |
| Bridging Loan | A 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 Order | A 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. |
| Discharge | The point where you are freed from the bankruptcy. |
| Estate | All 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. |
| Interest | The money paid for the use of money lent or a share in a property. |
| Legal Charge | A 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 Bankruptcy | This can either be the Official Receiver or an Insolvency Practitioner who takes control of your assets. |
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