A charge held over specific assets. The debtor cannot sell the assets without the consent of the secured creditor or repaying the amount secured by the charge.
A charge held over general assets of a company. The assets may change (such as stock) and the company can use the assets without the consent of the secured creditor until the charge "crystallises" (becomes fixed). Crystallisation occurs on the appointment of an administrative receiver, on the presentation of a winding-up petition or as otherwise provided for in the document creating the charge.
An agreement to pay a debt owed by a third party. It must be evidenced in writing for it to be enforceable.
An authorised person who specialises in insolvency, usually an accountant or solicitor. They are authorised either by the Secretary of State or by one of a number of recognised professional bodies
Liquidation (winding up)
Applies to companies or partnerships. It involves the realisation and distribution of the assets and usually the closing down of the business. There are three types of liquidation - compulsory, creditors' voluntary and members' voluntary.
The Official Receiver or an insolvency practitioner appointed to administer the liquidation of a company or partnership.
Member (of a company)
A person who has agreed to be, and is registered as, a member, such as a shareholder of a limited company.
An IP who carries out the preparatory work for a voluntary arrangement, before its implementation.
Officer (of a company)
A director, manager or secretary of a company.
An officer of the court and civil servant employed by The Insolvency Service, who deals with bankruptcies and compulsory company liquidations.
An individual or corporation.
A creditor who is entitled to receive certain payments in priority to floating charge holders and other unsecured creditors. These creditors include occupational pension schemes and employees.
Proof of debt
A statutory form completed by a creditor in a compulsory liquidation to state how much is claimed. The form is supplied by the Liquidator.
OR/IP appointed to preserve a company's assets pending the hearing of a winding up petition.
Instead of attending a meeting, a person can appoint someone to go and vote in their place - a 'proxy'.
Form that must be completed if a creditor wishes someone else to represent him or her at a creditors' meeting and vote on his or her behalf.
When a company is being wound up or in bankruptcy proceedings, the Official Receiver may at any time apply to the court to question the company's director(s) or any other person who has taken part in the promotion, formation or management of the company or the bankrupt.