Interest that has not been paid on time. Implies a more serious state of delay than past-due or delinquent.
A Garnishee Order, now known as a Third-Party Debt Order, is a legal mechanism used to seize money directly from a debtor's bank account to satisfy a judgment debt.
To pledge something as security without turning over possession of it. Hypothecation creates a right in the creditor to have the pledge sold to satisfy the claim out of the sale proceeds.
A judgment creditor is a creditor who has obtained a legal judgment against a debtor, allowing the creditor to enforce collection of the debt owed. This status grants the creditor certain priority rights over other creditors and can extend the enforceability of the claim under the statute of limitations.
A multifaceted concept predominately characterized by the sequence of preference in various legal and financial settings including bankruptcy proceedings, and the right to be paid before other creditors.
A legal document filed with a court by a creditor to verify their position as a holder of debt, asserting the right to receive a payout from a debtor's bankruptcy estate.
A Register of Charges is a statutory document maintained to record details of charges created by a company on its assets to secure debt. It is crucial for maintaining transparency and protecting creditor rights.
A secured creditor holds a financial interest, either through a fixed or floating charge, over the assets of a debtor, providing a level of security for the creditor's investment by granting the right to seize or sell these assets if the debtor defaults.
A statutory demand is a formal request issued by a creditor to a debtor demanding the repayment of an outstanding debt. It serves as evidence of a debtor's inability to pay if unmet, and can support a compulsory liquidation petition under the Insolvency Act 1986.
A legal order made by a judge allowing a creditor to claim money directly from a third party holding funds for a debtor, such as a bank, until the court authorizes its release to the creditor.
Title theory is a modern version of the common law mortgage under which the creditor has the legal right to possession although in fact the debtor remains in possession of the property.
