Act Now to get your finances back on track


a | b | c | d | e | f | g | h | i | j | k | l | m | n | o | p | q | r | s | t | u | v | w | x | y | z


Administration Order

An order made by a court in respect of a company that appoints an administrator to take control of the company. A company can also be put into administration if a floating charge holder, or the directors or the company itself file the requisite notice at court. A creditor may also apply to court for the granting of an administration order.

Administrative Receiver

An Insolvency Practitioner appointed by the holder of a debenture that is secured by a floating charge that covers the whole or substantially the whole of the company's assets. The Insolvency Practitioners task is to realise those assets on behalf of their appointer.

Administrative Receivership

The process where an Insolvency Practitioner is appointed by a debenture holder (lender) to realise a company's assets and pay preferential creditors and the debenture holder's debt. The right of a debenture holder to appoint an administrative receiver has been restricted by the Enterprise Act 2002.


An Insolvency Practitioner appointed following the obtaining of an administration order.


Cancellation of a Bankruptcy. Once obtained the bankruptcy never existed.


Anything that belongs to the debtor, including a company debtor, that may be used to pay their debts.

Back to Top


Bankruptcy restrictions order or undertaking

A procedure will be introduced on 1 April 2004 whereby a bankrupt who has been dishonest or in some other way to blame for their bankruptcy may undertake or have a court order made against them which will mean that bankruptcy restrictions continue to apply after discharge for a period of between two to fifteen years.

Back to Top



Security interest taken over property by a creditor to protect against non-payment of a debt (such as a mortgage), or a fixed and floating charge in a company.

Company Directors Disqualification Act 1986

An Act of Parliament that deals with the disqualification of directors.

Compulsory liquidation

Winding up of a company after a petition to the court, usually by a creditor.


Every person liable to contribute to the assets of a company if it is wound up. In most cases this means shareholders who have not paid for their shares in full.


Someone owed money by another party, be that an individual or company.

Back to Top



A document in writing, usually under seal, issued as evidence of a debt or the granting of security for a loan of a fixed sum at interest (or both). The term is often used in relation to loans (usually from banks) secured by charges, including floating charges, over companies' assets.


A person who controls the running of a company. Can also be a shareholder.


A procedure whereby a person has a court order made against them or gives an undertaking to the Secretary of State which makes it an offence for that person to be involved in the management or directorship of a company for the period specified in the order (unless leave has been granted by the court).


Any sum distributed to unsecured creditors in an insolvency.

Back to Top


Back to Top


Fixed charge

A charge held over specific assets. The debtor, including a company, cannot sell the assets without the consent of the secured creditor and must then repay the amount secured by the charge.

Floating charge

A charge held over general assets of a company. The assets may change (such as stock) and the company can use the assets without the consent of the secured creditor until the charge "crystallises" (becomes fixed). Crystallisation occurs on the appointment of an administrative receiver, on the presentation of a winding-up petition or as otherwise provided for in the document creating the charge.

Back to Top



An agreement to pay a debt owed by a third party. It must be evidenced in writing for it to be enforceable.

Back to Top


Back to Top



Unable to pay debts as and when they fall due and/or liabilities exceed assets.

Insolvency Practitioner

An authorised person who specialises in insolvency, usually an accountant or solicitor. They are authorised either by the Secretary of State or by one of a number of recognised professional bodies

Back to Top


Back to Top


Back to Top


Liquidation (winding up)

Applies to companies or partnerships. It involves the realisation and distribution of the assets and usually the closing down of the business. There are three types of liquidation - compulsory, creditors' voluntary and members' voluntary.


The Official Receiver or an Insolvency Practitioner appointed to administer the liquidation of a company or partnership.

Back to Top


Member (of a company)

A person who has agreed to be, and is registered as, a member, such as a shareholder of a limited company.

Back to Top



An Insolvency Practitioner who carries out the preparatory work for an individual or company voluntary arrangement, before its implementation.

Back to Top


Officer (of a company)

A director, manager or secretary of a company.

Official Receiver

An officer of the court and civil servant employed by The Insolvency Service, who deals with bankruptcies and compulsory company liquidations.

Back to Top



A formal application made to a court.

Personal Guarantee

A guarantee usually given by a director(s) over the debts of a limited company.

Preferential creditor

A creditor who is entitled to receive certain payments in priority to floating charge holders and other unsecured creditors. These creditors include occupational pension schemes and certain monies due to employees.

Proof of debt

A statutory form completed by a creditor in a compulsory liquidation to state how much is claimed. The form is supplied by the Liquidator.

Provisional liquidator

Can either be the Official Receiver or Insolvency Practitioner appointed to preserve a company's assets pending the hearing of a winding up petition.


Instead of attending a meeting, a person can appoint someone to go and vote in their place - a 'proxy'.

Proxy Form

Form that must be completed if a creditor wishes someone else to represent him or her at a creditors' meeting and vote on his or her behalf.

Public Examination

When a company is being wound up or in bankruptcy proceedings, the Official Receiver may at any time apply to the court to question the company's director(s) or any other person who has taken part in the promotion, formation or management of the company or the bankrupt.

Back to Top


Back to Top



The commonly used name for an administrative receiver. The term can also mean a person appointed by the court or with the power to receive the rents and profits of property. Receivers who are not administrative receivers do not need to be Insolvency Practitioners.


A company in administrative receivership is often said to be "in receivership".


A procedure that cancels a winding-up order.


The point at which the Official Receiver or an Insolvency Practitioner is discharged from the liabilities of office as trustee/liquidator or administrator.

Back to Top


Secured creditor

A creditor who holds security, such as a mortgage, over a person's assets for money owed.

Shadow director

A person who, without being formally appointed, gives instructions on which the directors of a company are accustomed to act.

Statement of affairs

A document accompanied by a Statement of Truth, completed by a bankrupt, company officer or director(s), stating the assets and giving details of debts and creditors.


An Insolvency Practitioner appointed to supervise the carrying out of an individual or company voluntary arrangement.

Back to Top


Back to Top


Unsecured creditor

A creditor who does not hold security (such as a mortgage) for money owed. Commonly used to mean a creditor who is a non-preferential, unsecured creditors but in fact, a preferential creditor is also unsecured.

Back to Top


Voluntary Arrangement

A legally binding agreement with creditors covered by the Insolvency Act.

Voluntary liquidation

A method of liquidation not involving the courts or the Official Receiver. There are 2 types of voluntary liquidation - members' voluntary liquidation for solvent companies and creditors' voluntary liquidation for insolvent companies.

Back to Top


Winding up order

Order of a court, usually based on a creditor's petition, for the compulsory winding up or liquidation of a company or partnership.

Back to Top


Back to Top


Back to Top


Corporate - Individual - Turnaround