Arrestment
This forces the debtor's employer to make deductions from the debtor's earnings and pay them to the creditor.

Bankruptcy (Sequestration)
Sequestration is legal procedure for dealing with debts when you cannot pay.

Budget (Financial Statement)
A budget is a document listing details of income and expenditure.

Budgeting
The process of managing outgoings so that they don't exceed income.

Budget Deficit
The amount on your budget by which your expenditure exceeds your income before allowing for offers of payment on non-priority debts.

Budget Surplus
The amount on your budget by which your income exceeds your expenditure before allowing for offers of payments on non-priority debts.

Creditor
Someone to whom you owe money.

Credit Rating
A credit scoring systems which give points to items of information given on your application form when applying for credit.

Debtor
Someone who owes money.

Debt Collection Agency
A company which collects debts on behalf of or which buys the debt from the original creditor.

Debt Consolidation
This is taking a new loan and using the proceeds to pay off several smaller debts.

Debt Management Plan
This is a repayment scheme administered by Consumer Credit Counselling Service for people unable to pay their creditors the full contractual payments.

Default Notice
This must be issued by creditors in respect of debts covered by the Consumer Credit Act 1974 before any further action is taken.

Direct Debit
The account holder instructs the bank or building society to comply with requests from a third party to make a series of payments to them.

Downshifting
Making major changes to one's lifestyle caused by accepting a reduced level of income.

Hire Purchase
An agreement where goods are hired for an agreed period, at the end of which the hirer has the option to purchase.

Inhibition
This prevents the debtor from disposing of his heritable property or using it, which is contrary to the interest of the creditor who has the inhibition.

Irregular Bill
An occasional expense e.g. TV licence, car tax etcetera.

Joint & Several liability
If two or more parties enter into a credit agreement they will each be liable for repaying the whole amount borrowed.

Late Fees
Fees added to the amount owed by the debtor when payments are late and where such fees are allowed for in the original contract.

Maximising Income
Increasing your income.

Monthly Expenses
The amount of money needed each month to pay your rent or mortgage, your gas, electricity and council tax, your food and other living expenses.

Non-Priority Debts
Non-Priority Debts are those where the creditor cannot deprive you of liberty, home or essential goods and services.

Priority Debts
Priority debts are those where non-payment gives the creditor the right to deprive you of your home or essential goods and services.

Repossession
Process by which a creditor with a loan secured on house or goods (e.g. car) can take possession if you do not maintain agreed payments.

Secured Loan
Where the lender has a legal charge on assets (usually a house) giving rights of repossession over that asset if payments on the loan are not maintained.

Sheriff Court Decree
A Sheriff Court decree is an order of the court containing the decision on the claim in favour of one of the parties and granting the remedy sought, or disposing of the claim.

Sheriff Court Summons (initial writ)
Initial form sent by the court to a debtor when a creditor initiates court action.

Sheriff Officers
Independent contractors working as officers of the court. Their main duties include the serving of court documents and the enforcement of court decisions.

Standing Order
This is an instruction signed by an account holder ordering a Bank or Building Society to make regular payments from a account of specified amounts on specified dates.

Trust Deed
A means of protecting yourself from your creditors by entering into a legally binding agreement supervised by an Insolvency Practitioner.

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

Welfare Benefits
State funded allowances paid to those in certain defined circumstances including low income and disability.