Glossary
Incorporation (Of a Company)
Incorporation is the process by which a new or existing business registers as a limited company. A company is a legal entity with a separate identity from those who own or run it.
Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement is where an individual who owes money to his creditors, will formally make an arrangement with them to pay then back (all or a proportion) over a set duration of time. The proportion of unpaid debt will then be forgiven by the creditors, when this has run its course.
Insolvency Act
The Insolvency Act 1986 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.
Insolvency Practitioner
An Insolvency Practitioner is a professional who is licensed to act on behalf of companies and individuals when they require an insolvency procedure. There was approximately 1,700 licensed practitioners in the UK (as at August 2020).
Insolvency Rules
The Insolvency Rules 2016 is the legislation that sets out the detailed procedures for the conduct of all company and personal insolvency proceedings in England and Wales.
Insolvent
A company or individual is insolvent if they are unable to pay the monies they owe, on time. Also see Cash-flow insolvency and Balance-sheet insolvency.
Intangible
An intangible assets is an asset that is not physical in nature. It may be goodwill, the value of a brand, trademarks, copyrights to name a few.
Intellectual Property
Intellectual property is something that is created, but not physically visible – for example, names of products or brands, inventions, design. This is usually protected by a trademark, copyright or patent.
Interim Order
The term interim order refers to an order issued by a court during the pendency of the litigation. It is generally issued by the Court to ensure Status quo.
Interlocking Voluntary Arrangement
An Interlocking Voluntary Arrangement, is an arrangement which is linked to that of another individual (this is often used for husband and wife). The best way to think of this would be to say that all the “couples” assets and as all of the couples liabilities, even if they are perhaps only one of the individuals names, are considered to be join and are all put into the same pot. The creditors of the individuals have the arrangement put to them to consider. Once the arrangement is agreed the individuals make joint payments into an arrangement and ensures that the contributions each person makes is affordable and that the payments made to each creditor is equal.
Inventory
A complete list of items of property, stock, records, building contents.
Investor
An investor is a person or organisation who provides money to a business in exchange for a share of ownership.
Invoice Discounter
Usually a bank or finance institution who lends money based on monies that are invoiced with monies due to the company on set terms.
