Bankruptcy: A Fresh Start

GLOSSARY OF TERMS USED IN THE CONSULTATION DOCUMENT

Property acquired by or devolved upon the debtor after the making of the bankruptcy order and before discharge.

Annulment of bankruptcy order

The Court may make an order annulling a bankruptcy order, the effect of which is as if the bankruptcy order had never been made.

Except in certain cases, discharge is automatic at the end of two or three year periods.

A debtor who is unable to meet his liabilities and is subject to a bankruptcy order.

The law of insolvency as it relates to individuals.

A court order by which a debtor is declared bankrupt.

A person who owes money.

The discharge of a bankrupt frees him of all debts and liabilities provable under the bankruptcy, subject to certain exceptions.

The period of time from when a person is adjudged bankrupt until he is discharged from bankruptcy. In most cases, discharge is automatic after a set period of time, which is two years in the case of summary administrations, and three years in other cases.

In the context of ‘equity in a home’, the value of the home less the amount of any mortgage liability.

All of the property belonging to or vested in the bankrupt, subject to certain exceptions to satisfy the basic domestic needs of the bankrupt and his family.

A court order against a bankrupt, requiring the bankrupt to make payments from his ‘income’ to the trustee.

A proposal to creditors for the settlement of the debtor’s debts.

The inability to pay one’s debts as they fall due.

A professional practitioner authorised to act by virtue of his membership of a recognised professional body, or who holds an authorisation granted by a competent body.

(1) The winding-up of a company. (2) In relation to ‘the liquidation of assets’, ‘liquidation’ simply means the sale of those assets.

An official appointed by the Secretary of State to deal with bankrupts’ estates.

A person appointed to manage a debtor’s assets or receive his income, usually on behalf of a secured creditor.

A creditor who holds some security for his debt.

A bankruptcy order made against a debtor who has debts of less than £20,000 and fulfils certain other conditions, the result of which is that the duration of the bankruptcy is two years.

A person who collects and realises the bankrupt’s estate and distributes the proceeds to creditors.

A bankrupt who has not yet been discharged.

A creditor who holds no security for his debt.