Attachment of Earnings
An Attachment of Earnings order requires an employer to pay set amounts from the employee's earnings to the Enforcement of Judgments Office (EJO) towards clearing a judgment debt.

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

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

Judgments
The Court deals with most civil cases and is often used by creditors to attempt debt recovery. A Judgment gives details of the court's decision.

Custody Warrant
When the EJO has accepted an application for enforcement, a custody warrant is issued and served on the debtor.

Debtor
Someone who owes money.

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.

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

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.

Individual Voluntary Arrangement (IVA)
A means of protecting yourself from your creditors by entering into a legally binding agreement supervised by an Insolvency Practitioner.

Instalment Order
Where it is determined that a person has the financial means to clear part or all of a judgment debt within a reasonable period of time then an instalment order can be made.

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.

Money judgment
Court action to get an order establishing that an amount of money is legally due to the creditor.

Monthly Expenses
The amount of money needed each month to pay your rent or mortgage, your gas, electricity and water, 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.

Order Charging Land
An Order Charging Land places a charge on property or land, which allows a creditor to be paid once the property or land is sold.

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

Process in Debt Proceedings
A form notifying a person in debt or appearing before a local magistrates court on a fixed date initiates the process in debt proceedings. The proceedings can be used to start a court action where the debt is £100 or less, or the balance of an account does not exceed £250. Larger sums can be recoverable where provided for in legislation. The Rent (N.I.) Order 198 and Rates (N.I.) Order 19 allow the Northern Ireland Housing Executive to collect rent and rates debts of any amount through the process in debt proceedings.

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.

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.

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.