Common terms & definitions

> Administration Order
Under an administrative order, you make payments directly to the court which then supervises payment to your lenders.

> Bankruptcy
The legal declaration of an individual’s financial insolvency.

> Consolidate
You can combine all your debts into one debt consolidation loan that allows you to make one repayment a month towards paying back the total amount that you owe.

> Creditor
The individual or company to whom you owe money.

> Debt
An obligation to pay a person or company for services and goods provided.

> Debt management
Process of negotiation between creditors and debtors in order to arrive at an agreement regarding the reduction of monthly repayments for an outstanding debt.

> Debtor
Individual that has an obligation to repay money to a lender.

> Individual Voluntary Arrangement (IVA)
An IVA or Individual Voluntary Arrangement is an agreement between a debtor and his or her creditors under the Insolvency Act of 1986. Unlike a debt negotiation made on your behalf by a debt manager, an IVA is registered with the Government and processed through the Courts.