We have compiled this glossary of terms that are used within the Insolvency and Restructuring sector. We hope this list helps understand some of the jargon within the business.

If you have any suggestions to add, feel free to contact us.

Administration

When a company has hit financial difficulties. An Administrator takes charge of the company during this period. Administration also protects the company from it’s creditors.

Administrator

An individual, who is appointed by the court, that acts as the controller of the company while it is in administration.

Annulment

An application to the court to cancel a Bankruptcy order.

Assets

Any property and goods that belong to a company.

Bankrupt

An order made against an individual. The order signifies that the individual can not pay their debts, and their assets are distributed amongst their creditors.

CCJ

A County Court Judgement, when a company or individual can take you to court as you have not paid a debt. The court will order you to pay the debt within a certain amount of time.

Creditor

An individual who is owed money by an individual or company.

Debenture

A type of security that includes a floating charge over the company’s assets.

Dividend

A sum of money that is distributed, usually annually, to a company’s creditors.

Debtor

An individual that owes money to a company or individual.

Distraint

Where goods are seized and are sold off towards payments of a debt.

Fixed Charge

A type of security held over pre-determined assets. This prevents the debtor from dealing with those assets without the consent of creditor.

Floating Charge

A type of security held over general assets of the company which may change from time to time during the course of the business. The company can continue to use these assets until an event of default occurs.

Liabilities

The amounts owed by a company or individual to its creditors.

Liquidator

The licensed insolvency practitioner appointed to wind up a company.

Nominee

A licensed insolvency practitioner that assists in proposing a deal to a company’s creditors.

Official Receiver

A civil servant that works for the Department of Trade and Industry, who oversees the affairs of the company in liquidation.

Personal Guarantee

A guarantee given by an individual, who agrees to be responsible for the financial liabilities of a company.

Receiver

An individual who is appointed by a secured creditor that is holding a floating charge over a company’s assets.

Secured Creditor

A creditor who has security over some of the company’s assets, usually in the form of debenture or a charge.

Shadow Director

An individual who is not registered as a director, however their instructions are followed by directors and employees of the company.

Unsecured Creditor

Any creditor that does not hold security over any assets that the company owns.

Winding-Up Order

An order made by the court to have the company be placed into compulsory liquidation.

about encompass

Founded in 2011 by entrepreneurs Roger Carson and Wayne Johnson, and operating from the UK, encompass is the creator of unique, innovative Know Your Customer (KYC) software for banking, finance, legal and accountancy that enable better, faster commercial decisions. The company is driven by the belief that the best decisions are made when people understand the full picture.

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