The person usually an accountant or solicitor authorised by the Department of trade and Industry (DTI) or a professional body to act as trustee nominee, supervisor, Liquidator, administrative receiver or administrator full stop only such a person can hold any of these offices.

The term applied when an insolvency practitioner is appointed as an administrative receiver.

The person appointed by the holder of a floating charge debenture over a company’s assets to collecting and realised the assets of that company and to repay the indebtedness to the debenture holder.

The insolvency practitioner appointed by the court to handle the affairs of a company the subject of an administration order.

A special remedy to take control of the assets of a farmer under the agricultural credits act 1928.

Associates of individuals include family members, relatives, Partners and their relatives, employees, employers comma trustees in certain Trust relationships, and companies which the individual controls. Associates of companies include other companies under common control.

Someone against whom the bankruptcy order has been made and who has not been discharged from bankruptcy.

Insurance cover needed by a person who acts as an insolvency practitioner.

The appropriation of a real or personal property for the discharge of debt without giving the creditor any property in, or possession of, the subject of security.

Court order placing restrictions on the disposal of certain assets, such as property or securities given after judgements and gives priority of payments over other creditors.

Consolidation act on the disqualification of directors

A voluntary agreement for a company is a procedure whereby a plan of reorganization or composition in satisfaction of debt, is put forward to creditors and shareholders. There is limited involvement by the courts and the scheme is under the control of the supervisor.

An agreement between debtor and his creditors whereby the compounding creditor agree with the data between themselves to accept from the data payments of less than the amount due to them in full satisfaction of their claim.

Replacing a company into liquidation as a result of an application to the court, usually by a creditor.

Directors or shadow directors and their Associates, and associates of the company.

Shareholder, every person liable to contribute to the assets of a company in the event of it being wound up.

A person, not necessarily a licensed insolvency practitioner, appointed to take charge of assets usually where they are subject to some legal dispute. Not strictly an insolvency process comma the procedure may be used other than for a limited company, EG to settle a partnership dispute.

A creditors committee is formed to represent the interests of all creditors in supervising at the activities of an administrator or trustee in bankruptcy, or receiving reports from an administrative receiver.

Remind Stu an insolvent company. It is commenced by resolution of the shareholders, but is under the effective control of the creditors who can choose the Liquidator, liquidation committee.

A document stating the terms of a loan, usually to a company. Debentures may be secured on parts or all of a company’s assets comma all they may be unsecured. Often also referred to as a floating charge, and the Mandir is often referred to as the debenture holder.

Method for an individual not a company to come to terms with creditors short formal bankruptcycomma it has now been almost completely replaced by individual voluntary arrangements.

A director found to have conducted the affairs of an insolvent company in an unfit manner may be disqualified, an application to the courts by the DTI, from holding any management position in a company for between 2 and 15 years.

An extortionate credit transaction is it a transaction by which credit is provided on terms that are exorbitant or grossly unfair compared with the risk accepted by the creditor. Search the transaction may be challenged by administrator, a Liquidator or a trustee in bankruptcy.

A fixed charge is a form of security granted over specific assets, preventing the Debt or dealing with those assets without the consent of the secured creditor. It gives the secured creditor a first claim on the proceeds of sale, and the creditor can usually appoint a receiver to realise the assets in the event of a default.

A floating charge is a form of security granted to a creditor over general assets of a company​_ which may change from time to time in normal course of business e.g stock full stop the company can continue to use the assets and it’s business until an event of default occurs and the charge crystallizes. If this happens, the secured creditor can realise the assets to recover his debts, usually by appointing an administrative receiver, and obtain the net proceeds of sale subject to the prior claims of the preferential creditors e.g. customs and excise or Inland Revenue.

Where a company has carried on business with intent to defraud creditors, or for any fraudulent purpose. it is a criminal offence and those involved can be made personally liable for the company’s liabilities.

Basis on which insolvency practitioners prefer to sell a business. Effectively it means the business continues jobs are saved and a higher price is obtained.

A legal commitment to repay a debt if the original borrower fails to do so. Directors may give guarantees the banks in return for the bank giving finance to their companies. Companies in a group may guarantee each others loans.

A voluntary arrangements for an individual of this procedure whereby the person comes to an arrangement with his creditors in how their debt will be discharged. Such a scheme requires the approval of the courts and is under the control of a supervisor.

The state of not being able to pay ones debts as they fall due or having an excess of liabilities over assets.

Primary legislation governing insolvency law and practice. Never mess, and many other statues and statutory instruments are also relevant.

A company goes into the solvent liquidation if it goes into liquidation at a time when assets are insufficient for the payments of its debts and other liabilities and the expenses of liquidation.

Person authorised by one of the Chartered accountancy bodies, the Law Society, the insolvency practitioner Association of the department of trade. The only person who may act as office holder in insolvency proceeding.

The insolvency rules 1986, as amended, provide a detailed working procedures for the provisions of insolvency act 1986.

An individual coincidence to propose a voluntary arrangement to his creditors McGuire to the court for an interim order which, if granted,precludes bankruptcy and other legal proceedings whilst the order is in force.

A Statutory scheme operated by the SIB securities and Investments board to give individual investors up to £48,000 protection if an authorised investment business collapses

1. Recognition of a debt by a coit.
2. Decision given by a court with the conclusion of the trial.

Government transactions in law and Property. Statutory powers of receivers appointed under a fixed charge.

Law of property act 1925 receiver: the person not necessarily and insolvency practitioner appointed to take charge of a mortgaged property by a lender who’s loan is in default, usually with a view to sale or to collect your rental income for the lender. Common in the cases of failure of a property developer, whose borrowings will largely be secured on specific properties full stop

Right to retain possession of assets or documents until the settlement of a debt

The procedure whereby the assets of the company or partnership are gathered in and realisedcomma the liabilities Metz and surplus, if any, distributed to members

Guilty of creditors who receives information from the Liquidator and sanctions some of his actions.

Court order preventing the disposal of assets.

Shareholder of a company.

A solvent liquidation where the shareholders appoint a Liquidator to realise assets and settle all the company’s debts in full within 12 months.

Breach of Duty in relation to the funds or property of a company by its directors or manager’s.

The transfer of interest in land or other property by way of security, redeemable from performing the condition of paying a given sum of money.

The person that shows and by the individual or corporate debtor to report on the debtors proposals for an IVA or CVA.

A person who is required to be a qualified insolvency practitioner to hold the following postcomma of a Liquidator, provisional Liquidator comma administrator comma administrative receiver comma supervisor of the voluntary arrangements comma or trustee in bankruptcy full stop

The civil servants employed by the dtra to head the regional offices whose responsibilities cover bankruptcies and compulsory liquidations.

The term onerous property in the context of a liquidation or bankruptcy, applies to unprofitable contracts and to property that is unsaleable or not easily saleable or that might give rise to a continuing liability. Such property can be described by a Liquidator or a trustee in bankruptcy.

A written application to the courts for relief or remedy

An act which established policyholders protection board to provide compensation to the public in the events of the liquidation of an insurance company. The board will make payment in full of liabilities under certain policies of compulsory insurance than 90% of my ability to provide policyholders under other general and Investment type policies. Compensation interest restricted individual policy holders or partnerships; corporate policy holders are not protected.

The payments or the transaction in the 6 month to 2 year period preceding a liquidation, administration or bankruptcy, which place is a creditor or a person connected with the insolvency, respectively, in a better position than they would have been otherwise. A Liquidator, administrator or trustee in bankruptcy may cover any sums which are found to be preferences.

Defined in schedule 6 of the insolvency act 1986. Has priority when funds are distributed by a Liquidator, administrative receiver or trustee in bankruptcy most commonly seen preferential creditor is the Inland Revenue.

Documents submitted in an insolvency to establish a creditors claim full stop it may be informal e.g. buy letter or in a prescribed form (in bankruptcy and compulsory liquidations).

A creditor who claims is referred to as proving for his debts, and the document by which he seeks to establish his claim is his proof.

The authority given by a creditor or member to another person proxy holder to attend a meeting and speak and vote at a meeting on behalf of the creditor principal or member.

A person who is authorised to attend the meeting on behalf of someone else.

The person appointed by the court for some specific purpose or the person appointed by a mortgage to exercise his rights over the Chargers property under the law of property act 1925 (not to be confused with the official receiver or administrative receiver).

The general term applied when a person is appointed as a receiver or administrative receiver over certain assets.

An organisation approved by the Secretary of State as being able to authorise its members to act as insolvency practitioners.

The body may be recognised if it’s raw regulates the practice of a profession and maintains and enforces rules securing that such of its members are permitted by or under the rules to act as insolvency practitioners-

1. are fit and proper persons so to act, and
2. Meet acceptable requirements as to education and practical training and experience.

An agreement for the sale of goods to a company, being and agreements;

1. which does not constitute a charge on the goods, but
2. Under which, if the seller is not paid and the company is wound up, the seller will have priority over all other creditors of the company in respect to the goods or any property representing the goods.

The creditor with specific rights over some or all his debtors assets in the event of insolvency. In essence is paid first from the secured assets.

A charge or mortgage over assets taken to secure payment of a debtfull stop if the debt is not paid, the lender has a right to sell the charged assets. Security documents can be very complex. The commonest example is a mortgage over a property.

A person who is not formally appointed as a director, but in accordance with his directions for instructions the directors of a company or a custom to act. However a person is not a shadow director merely because the director’s act on advice given by him in a professional capacity full stop

A special manager is a person appointed by the courts in a compulsory liquidation or bankruptcy to assist The Liquidator, official receiver or trustee in managing the insolvency business. He does not need to be an insolvency practitioner

A formal notice requiring payment of a debt ceiling £750 within 21 days, in defaults of which bankruptcy or liquidation proceedings may be commenced without further notice.

The person appointed to supervise the implementation of the debtors prison proposals for an IVA or CVA once approved by creditors and members.

A transaction at undervalue can be described either as a gift or a transaction in which the consideration received is significantly less than that given. In certain circumstances such a transaction can be challenged by an administrator, a Liquidator or a trustee in bankruptcy.

Either

• And bankruptcy- the authorised insolvency practitioner appointed to deal with the estate of the bankrupt;
• Under a deed of arrangement- the authorised insolvency practitioner appointed to deal with the estate of the person who entered into the deed.

Strictly, any creditor who does not hold security. More commonly used to refer to any ordinary creditor who has no preferential rights, although, infect preferential creditors will almost always be unsecured. In any eventscomma the last in the queue, ahead only of shareholders.

Someone against to a bankruptcy order has been made and who has not been discharged from bankruptcy.

The relief obtained in respect of the VAT element of an unpaid debt. Previously available only when the data became solvent, relief is now available on any debt unpaid for more than 6 months.

The placing of the company into liquidation by resolution of the members – there are two types of voluntary liquidation

The first of these does not involve insolvency and comes about merely because of the shareholders / members wish to have the value of their shareholding realised example on the retirement of the principles of the company was Incorporated or has been fulfilled.

(Or liquidation) – the procedure whereby the assets of the company or partnership are gathered in and realised comma the liabilities met and the surplus, if any, distributed to the members.

The order made by the courts for a company to be placed in compulsory liquidation.

A winding up petition is a petition presented to the court seeking an order that’s company be put into compulsory liquidation.

Applied to companies in liquidation where a director allow the company to continue trading in circumstances where he should have concluded that there was no reason prospect that the company would avoid going into solvent liquidation. The director’s involved may be personally liable to make a contribution to the company’s assets.