Glossary
Debenture
A debenture is an agreement between a lender and a borrower, which is registered at Companies House and lodged against assets.
Debt Relief Order
A Debt Relief Order (‘DRO’) is a simplified, quicker and cheaper alternative to bankruptcy and suitable for debtors who have few or no assets (less than £1000 and not homeowners) and little disposable income (less than £50 per month).
Debtor
A debtor is a person or organisations that owes money.
Debtor’s Petition
A debtor can petition for his own bankruptcy only on the grounds that he is unable to pay his debts. This is known as a debtor’s petition.
Decision Process
A decision process is a procedure brought by an insolvency practitioner for the creditors to vote on specified resolutions. The majority of votes will allow the resolutions to be passed.
Declaration of Solvency
A declaration of solvency is a statement of assets and liabilities at a particular point in time. It is an affidavit which is sworn or affirmed before a solicitor or commissioner of Oaths and filed at Companies House when there is a Members Voluntary Liquidation.
Deed
A deed is a written document which is executed with the necessary formality (witnessed), and by which an interest, right or property passes or is confirmed, or an obligation binding on some person is created or confirmed.
Deferred Asset
A deferred asset is an expenditure that is made in advance and has not yet been consumed.
Deferred Income
Deferred income (also known as deferred revenue) is money received for goods and services which has not been earned.
Department for Business, Energy and Industrial Strategy (BEIS)
The Department for Business, Energy and Industrial Strategy is a government department at the heart of the government’s commitment to build an economy that works for everyone, with great places across the UK for people to work and for businesses to invest, innovate and grow. It was formally (and most popularly) known as the Department of Trade and Industry.
Depreciation
Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear.
Director’s Disqualification
A person can be disqualified from acting as a director if it is proven that have acted in a manner that branded then as unfit to act as a director. This is known as Director’s disqualification.
Directors
The directors are individuals who are appointed and are in charge of the management of the company’s business. They make the strategic and operational decisions of the company and are responsible for ensuring that the company meets its statutory obligations.
Discharge from Bankruptcy
The discharge from bankruptcy is the event that releases an individual from his bankruptcy obligations. Usually occurs one year after the bankruptcy order was first made.
Dissolution
Dissolution of a company is where the name of the company is removed from the Companies House register. Usually follows the striking off of a company or liquidation.
Distraint
Distraint is the seizure of someone’s property in order to obtain payment of money owed, especially rent.
Dividend
A dividend is the distribution of some of the company’s earnings to the shareholders of the company.
Drawings
As sole traders are not directly employed and don’t receive a salary or dividend, they will pay themselves based on personal drawings from the business and will pay tax in according to their self-assessment declarations.
