Jargon Explained

Creditor – Someone whom you owe money to, i.e. bank or credit card company.

Debtor – Someone who owes money.

Individual Voluntary Arrangement – See IVA.

Insolvency Practitioner – See IP.

IP – A person specialising in formal insolvency cases. Required when entering into an IVA.

IVA – Legally-binding agreement with creditors to pay off an agreed amount of debt over a set time period.

Protected Trust Deed – A way of ‘Protecting’ a Trust Deed ensuring that no further action can be taken against you by your creditors for recovery of the money you owe them.

Secured Loan – A loan secured against a property or goods – These are normally exempt from any debt management scheme.

Trust Deed - Scotland only. A formal arrangement based on a proposal by a debtor to their creditors to clear their debt.

Unsecured Loan – A loan that is not secured on any property or goods.