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There are several words and phrases that you may come across, from credit
providers, the courts or bailiffs, for example, when you are in debt.
Administration Order
When you make a single payment (or series of payments) to the court, which then
distributes the money to the people you owe money to.
Arrears
When you are behind with payments (e.g. for rent or a loan)
Attachment of Earnings
When you can have money taken out of your wages or benefits to pay off your
debts.
Committal
Being sent to prison.
Suspended Committal Order
If you are given a suspended committal order by the court because you have
not paid your debts, it means that you won't go to prison as long as you make
payments of a certain amount that have been worked out by the court.
County Court Judgment (CCJ)
When the county court decides that a credit debt must be repaid, the
creditor can use methods including bailiffs, a charging order and attachment of
earnings to get you to do so.
Charging Order
Where the county court adds a credit debt onto your home (if you are a home
owner or if you have a mortgage)
Conditional Sale Agreement
A way of borrowing money to buy things, similar to hire
purchase.
Creditor Sale Agreement
Someone you owe money to.
Default Notice
A formal warning that you have missed payments on a credit debt, and that
court action may be started against you.
Harassment
Where a creditor causes someone who owes them money 'alarm, distress or
humiliation'. They can be prosecuted for this, and lose their licence to
carry on their business.
Individual Voluntary Arrangement (IVA)
A legally-binding way of making an arrangement with creditors to pay them
back at an agreed rate, in return for them not taking court action against you.
Possession
The court order that allows a landlord or mortgage lender to take steps to
evict you from your home.
Regulated Agreement
A consumer credit agreement that is protected by the Consumer Credit Act
1974. It means that you are entitled to a properly-written credit
agreement, a 'default notice' if you fall behind with payments before the
creditor can take action against you, and the right to apply for a time order.
Return Order
When a county court forces you to return goods taken out under hire purchase
to the creditor.
Time Order
Something you can ask the court for to stop interest adding up on the money
you owe, and to reduce the instalments you have to pay.
Warrant of Execution
What a creditor does when they want to get bailiffs to get back the money
you owe them.
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last updated
16/08/07
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