Finance Glossary

Bankruptcy

A legal process in the UK (in England, Wales, and Northern Ireland — Scotland uses sequestration) where a person who cannot repay their debts is declared bankrupt by a court. Most debts are written off after one year, but your assets may be sold to repay creditors. Bankruptcy is recorded on your credit file for six years and has severe restrictions on financial activity during that period.

Related terms

IVA (Individual Voluntary Arrangement)
A legally binding agreement between you and your creditors t
Debt Management Plan
An informal arrangement between a borrower and their credito
Default
A formal record on your credit file indicating that a credit
CCJ (County Court Judgment)
A County Court Judgment is a court order issued against some
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