Glossary of IVA Terms
Administration order Source:
An Administration Order requires you to make monthly repayments to the court, who in turn distributes the funds to your creditors. The court charges an administration fee for this facility, typically 10% of your payment.
During the Order’s effective term, your creditors must cease any correspondence and are forbidden from taking legal action against you.
This is someone currently serving a bankruptcy term.
This is the legally binding order which makes you bankrupt.
This is the result of an application to the court from an organisation’s creditors, pushing them into liquidation.
A creditors’ committee acts to protect the interest of all creditors.
Disqualification of Directors
The petition made to a court from the Department of Trade and Industry, prohibiting any director of an insolvent company, judged to have mismanaged its affairs, from holding any management status within a company for between 2 and 15 years.
A company which continues to trade with the intention to deceive creditors is seen as fraudulently trading. Individuals responsible can be made personally responsible for the company’s liabilities and face criminal charges.
Individual Voluntary Arrangement (IVA)
An IVA is an alternative to bankruptcy, allowing debtors to negotiate with their creditors in order to arrange payment of debt over a typical term of 60 months, with the remaining amount written off on completion of the IVA.
Insolvency Practitioner (IP)
An Insolvency Practitioner can be sanctioned by Chartered Accountancy Bodies, Law Societies, The Insolvency Practitioners Association or the Department of Trade. They are the only person who can represent an individual in an insolvency case.
An Interim Order protects you from bankruptcy and other legal actions while you are awaiting finalisation of an IVA.
Liquidation is the process by which a company’s assets are sold off to service an outstanding debt.
Official Receiver (OR)
The Official Receiver is appointed by the Department of Trade and Industry to deal with bankruptcy and compulsory liquidations.
This is a written request to the court for assistance.
Receivership refers to an individual being chosen to act as a ‘receiver’ of specific assets.