IVA & Insolvency Glossary

Key Terms, A to Z

After-acquired asset

Money or property you receive during an IVA, such as an inheritance or windfall, which usually has to be declared and paid in.

Annual review

A yearly check of your income and outgoings to make sure your IVA payment is still affordable and fair.

Bankruptcy

A formal insolvency that writes off most debts, usually with discharge after a year, but with greater risk to your assets.

Breathing Space

The Debt Respite Scheme in England and Wales, a temporary pause on most interest, fees and enforcement while you get advice.

Contingent liability

A debt that may become payable in future, such as a personal guarantee, listed in your IVA just in case.

Creditor

A person or organisation you owe money to.

Debt Arrangement Scheme (DAS)

A Scottish scheme to repay debts in full over time with interest and charges frozen.

Debt Management Plan (DMP)

An informal plan to repay your debts in full at a more affordable monthly rate.

Debt Relief Order (DRO)

An official order for people on low incomes with few assets, freezing debts for a year before writing them off.

Disposable income

What is left from your income after reasonable, essential living costs, the amount available to pay into an IVA.

Equity

The value in your home above any mortgage and secured loans, part of which an IVA may take into account.

Full and final settlement

A one-off lump sum accepted to settle your debts for less than the full balance.

Individual Insolvency Register

The public record of IVAs, bankruptcies and DROs, removed about three months after an IVA ends.

Insolvency Practitioner (IP)

The licensed professional who sets up and runs your IVA. See our IP guide.

Interim order

A court order that can protect you from creditor action while an IVA proposal is prepared.

IVA Protocol

An agreed set of standards most IVAs follow; the 2025 Protocol applies to IVAs approved from July 2025.

Moratorium

A period during which creditors cannot pursue you, for example the 12 months of a DRO.

Nominee

The role an Insolvency Practitioner takes when proposing your IVA to creditors, before it is approved.

Protected Trust Deed

The Scottish equivalent of an IVA.

Secured debt

A debt tied to an asset, such as a mortgage or car finance, which generally cannot go into an IVA.

Sequestration

The Scottish term for bankruptcy.

Supervisor

The role the Insolvency Practitioner takes once your IVA is approved and running.

Unsecured debt

A debt not tied to an asset, such as a credit card, loan or overdraft, the kind an IVA is designed for.

Variation

A formal change to the terms of an IVA, agreed with creditors, for example to reduce payments.

Windfall

Unexpected money, such as a lottery win or inheritance, which usually must be paid into your IVA.

Write-off

The remaining included debt cancelled when an IVA completes successfully.