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Glossary
Awaiting Meeting of Creditors (MOC)
The stage after drafting, but before Meeting of Creditors (MOC)
Conversion Rates
The rate at which customers/leads convert to sold solutions.
Debt Management Plan (DMP)
A DMP is an informal repayment plan set up by a 3rd party to help the debtor negotiate reduced repayments to their creditors. Unlike an IVA a DMP is not regulated nor legally binding, but is based on the individual debtors ability to repay their debt. As the creditor is not bound to agree to the plan, professional organisations who have good relationships with the industry creditors negotiate on the behalf of the debtor.
Drafting
This is the stage of the IVA process where we negotiate a repayment plan with the customer. It also entails taking customer through the legalities of the IVA process and drafting our customers legal documentation for presentation at the Meeting of Creditors.
Editing
This is the stage of the IVA process where the reconciliation of customer information pack with their supporting documents occurs, ensuring that all documentation is present and correct.
Individual Voluntary Arrangement (IVA)
An IVA is a formal, legally binding agreement between the creditor and the debtor where both parties agree to a reduced level of debt to be paid to the creditor over a fixed period (usually 5 years). Due to its formal nature, an Individual Voluntary Arrangement (IVA) has to be set up by a licensed professional.
Meeting of Creditors (MOC)
The term Meeting of Creditors refers to the stage of an IVA process when the creditors meet to either agree or disagree with the proposal that is presented to them on behalf of the customer. If the proposal is accepted the IVA will be formalised and a commission will be due to the introducing party. If unsuccessful the proposal will go back to the drafting stage to be looked at again.
Pack Out
The term Pack Out is in reference to when the initial documents for an IVA, DMP or Trust Deed are issued to the customer.
Pack Back
The term Pack Back is in reference to when the initial documents for an IVA, DMP or Trust Deed are returned by the customer, but before they have been checked for accuracy.
Sequestration
The Scottish equivalent of bankruptcy.
Trust Deed
A Trust Deed is the Scottish equivalent to an IVA, as IVAs are not available in Scotland. As with an IVA a Trust Deed is a legally binding agreement between the creditor and the debtor where both parties agree to a reduced level of debt to be paid to the creditor over a fixed period (usually 3 years).
Unsecured Debt
A debt that is not secured against either a property or vehicle. Usually seen in the form of a credit card, overdraft or unsecured loan.