Glossary
| Administration: | The process under the Insolvency Act 1986 for the purpose of protecting a company from attack to enable one of the following:-
(a) Rescuing the company as a going concern (b) Achieving a better result for the company’s creditors as a whole (c) Realising property in order to make a distribution to one or more secured or preferential creditors. |
| Bankruptcy: | The legal status of an individual debtor who has been declared bankrupt.
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| Company Voluntary Arrangements: | A statutory form of binding between a company and its creditors. In effect this will at best normally result in creditors receiving a proportion of the money that is due with the balance having to be written off.
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| Compulsory Liquidation: | Where the court put a company into liquidation normally on the basis of insolvency |
| Consumer: | Somebody who has entered into a contract not in the course of their business
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| Creditor: | Somebody who is owed money
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| Creditors Voluntary Liquidation: | Where the company puts itself into liquidation on the basis that it is insolvent.
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| Debt: | An undisputable sum of money due from one party to another.
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| Debtor: | Somebody who owes money
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| Individual Voluntary Arrangements: | A statutory form of binding between an individual and their creditors. At best this would result in a part payment towards monies due to creditors with the balance having to be written off.
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| Members Voluntary Liquidation: | Where the company puts itself into liquidation on the basis that it anticipates being able to pay all its creditors within 12 months.
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