Bailiff
Someone appointed by a creditor to recover payment for goods. If the debt is not paid, the bailiff can "seize" goods. Goods may not be removed immediately, but an inventory of goods may be taken and left with the debtor. This is known as "walking possession". Debtors are not allowed to dispose of any items that are subject to "walking possession".

C.A.B
Citizens Advice Bureau - http://www.citizensadvice.org.uk

C.C.C.S
Consumer Credit Counselling Service - http://www.cccs.co.uk

Charging Order
A court order placing restrictions on the disposal of certain assets, such as property.

County Court Judgement
This can be issued when a creditor takes a debtor to court. Court action results in the C.C.J being registered. A Court Order is also issued for repayment of the debt, either immediately or by instalments.

Credit Rating
Information about the credit history of an individual, provided by a credit reference agency.

Debt Consolidation
The replacement of multiple debts with a single loan.

Default Notice
A letter reminding the debtor that they have not paid their debt. A default notice is issued by a creditor before any further action can be taken. The default notice must allow at least seven days for the debtor to comply with action required.

Earnings Arrestment
If you are working, the money you owe a creditor can be taken from your wages or salary directly by your employer.

Frozen Account
A bank account whose funds may not be withdrawn until a charge is paid or a dispute is resolved.

Insolvent
Someone who is unable to meet their debt obligations when they are due.

Insolvency Practitioner
An individual who is professionally qualified to deal with insolvent companies and individuals. Only a recognised Insolvency Practitioner can arrange to undertake an insolvency procedure such as a bankruptcy or an IVA.

Interim Order
A ruling issued by the Court to halt a bankruptcy or other legal proceedings. This can be applied for by an individual who intends to enter into an IVA or other voluntary arrangement with their creditors.

Joint Liability
A legal liability shared by more than one person. If there is joint liability, all parties must be sued as a group and not individually. Legal responsibility for the debt lies with the person in whose name the debt was taken out.

Liability
Debt owed to a creditor.

Loan Sharking
Charging an illegally high rate of interest.

Priority Debt
This includes secured debts such as gas, electricity, water, council tax etc.

Proof of Debt
A document submitted in an insolvency case to establish a creditor's claim.

Proxy
Authority given by one person to another to attend or speak on their behalf at a meeting (e.g. a creditor giving authority to their representative).

Secured Creditor
A creditor who holds security for the money they are owed. They may, for instance, be entitled to take assets in cases of non-payment.

Security
A charge on assets taken to secure payments. The lender has the right to sell the charged assets if the debt is not paid.

Statutory Demand
A formal notice requiring payment of a debt exceeding £750 within twenty-one days. If the payment is not made, proceedings may be commenced for bankruptcy or liquidation, without further notice.

Unsecured Creditor
A creditor who does not hold security for money owed. This means they have no entitlement to assets in event of non-payment. This type of creditor has loaned money on "promise to repay".