What is Equity?
Bankruptcy ProcessThe amount of money you would keep after selling an asset and repaying any loan secured on it, used most often with property.
Related Bankruptcy Process terms
Administration Order
A court order allowing you to pay missed debts through the court in one affordable monthly payment, usually used for CCJs under £5,000.
Asset
Anything you own that has monetary value — for example property, vehicles, savings or jewellery.
Bankruptcy
A legal process that writes off most of your unsecured debts if you cannot pay them, usually lasting one year from the date of the order.
Debt Management Plan (DMP)
An informal arrangement to repay your debts at an affordable monthly rate, usually set up free through a debt charity.
Debt Relief Order (DRO)
A formal debt solution for people with low debt (currently under £20,000), very little income and no assets. It freezes debts for 12 months then writes them off.