Collection House Ltd

(1) Court action designed to maintain an insolvent company as a going concern under the terms of the Insolvency act 1986 and to appoint an Administrator to manage the business for the duration of the order.  (2) A court order made for the administration of the assets of a debtor, during which creditors may only claim through the court.

A receiver or manager of a company's property appointed by or on behalf of debentures in the company.

(1) A person appointed to manage a business in financial difficulties through the application of an administrator order. (2) A person appointed by a court to collect and distribute the estate of a deceased person who has dies intestate.

If you fail to pay money as ordered in a County Court Judgment, the creditor can apply to the court to have money deducted from your wages.

A court officer employed to seize the property of a debtor and to enforce court orders.

The condition when a person or company is judged to be insolvent.

Failure to fulfill the obligations imposed by the signing of a contract.  Overdue debt is a breach of contract.

A certificate issued by the court to prove a CCJ or Attachment of Earnings has been paid.

A document in which the details, date and manner of service of Court documents are contained.

A document served in Scotland, where the debtor has been ordered to pay an outstanding debt within a given timescale. Similar to a County Court Judgment in England and Wales.

The Charging Orders Act 1979 allows creditors with a High Court judgment or County Court judgment the ability to secure the debt to assets.

The person who is bringing a civil claim in the County Court or High Court.  Formerly known as a plaintiff.

A formal insolvency procedure which allows any financial problems of a company to be overcome with the creditors consent so that the business can continue to trade.

A judgment issued by the court in order for you to make payments to a debt you owe when you have failed to keep to an original agreement with the creditor and not made any attempts to come to an agreement of repayment.  Judgments are enforceable for 6 years and can affect the defendant’s ability to borrow money or obtain credit.

Formal document sent by the court to inform you that a creditor has begun legal proceedings against you. You are given 14 days to respond to the form. Ignoring the claim will result in a Judgment being registered by default and an order to pay the whole amount immediately.

A person or company or other entity that lends you money.

This is where one business guarantees the borrowing of another. These businesses need not be connected but often are.

A debtor is someone who is in debt and is required to repay their creditors.

A person or legal entity whom legal proceedings are brought against.

A legally binding document that once signed by a company director results in them being personally liable for any debts that the company fails to pay, even if the company should fail.

Costs in civil cases that are set at a certain level.

High Court Enforcement Officers (HCEOs) execute the judgments
and orders of the High Court and County Courts of England and
Wales.  The debt must be over £600 and it cannot be one where judgment has been obtained for a debt owed under the Consumer Credit Act 1974.

In Bankruptcy, the Official Receiver or Trustee can apply for an Income Payments Order if they feel that the debtor can afford to make a regular contribution into the bankruptcy, which would then be distributed for the benefit of the creditors.

An IVA is a formal procedure whereby a debtor could come to an arrangement with his/her creditors to pay his/her debts in full or in part over time as an alternative to bankruptcy.  The debtor makes regular payments to their creditors often over a five year period and any balance is written off at the conclusion of the IVA.

Having insufficient funds to meet all debts, or being unable to pay debts as and when they fall due.

A person who specialises in insolvency, they are recognised by the appropriate board and are fully qualified to deal with your insolvency.

A form of liability under which a person can be sued with others (such as a partnership) or individually.

When a business/company is terminated or made bankrupt, all company assets are sold off and the proceeds go to pay the creditors. Any remaining money is distributed between the shareholders.

The OFT has a regulatory role overseeing that debt collection agencies (DCAs) and debt purchase companies adhere to expected standards of behaviour and competence; in particular where the Consumer Credit Act 1974 is concerned.

A Part 36 Offer can be brought by a claimant or defendant and is an attempt to set out terms which will bring litigation to a conclusion.  An offer to settle the action is made with provision for payment of costs.

This refers to a code of conduct that DCAs are required to follow prior to the issue of legal proceedings.  In particular pre-action protocol is required when dealing with disputed debt as all information should be disclosed by both parties.  There may be cost implications (for the claimant/creditor) following litigation for failing to comply with a protocol as had they done so, they may have saved themselves the costs of the proceedings in the first place.

A notice sent under Section 122 of the Insolvency Act 1986 which puts the debtor on notice that winding up proceedings will be commenced should the debt not be paid.

Term used for bankruptcy in Scotland.

A statutory demand is a legal document requiring the debtor to pay an outstanding debt or to secure it against a property.

The act of putting by a transfer, a person in the place of another, or a thing in the place of another thing. It is the substitution of a new for an old creditor.

This is the Scottish equivalent to an IVA.

When debtors have failed to pay a CCJ, bailiffs can go to a property and acquire goods to the value of debt. It is a method of enforcing judgments and is an order to Bailiffs to seize and sell your possessions, to enable payment of the original judgment amount.  Warrants of Execution are issued for debts of between £60 and £5,000 – any amount over this will need a writ of fi.fa, which is issued by a High Court.