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Debt Advice Glossary

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Bailiffs

Bailiffs are officials who can take away someone’s goods. Creditors use bailiffs to collect outstanding debts. They can remove non-essential belongings from your property. They then sell your goods & put the money towards your debt.

Bankruptcy

Bankruptcy is a legal procedure where the courts write off debt that you cannot pay back in a reasonable amount of time. If you've got any assets they will be sold to pay back your debt.

Bankruptcy Restriction Order (BRO)

During bankruptcy, if you are found to have behaved dishonestly or recklessly, a bankruptcy restrictions order (BRO) can be made. A BRO extends the period of restrictions up to 15 years, e.g. increase the time it takes for you to be discharged from bankruptcy.

Beneficiary

A beneficiary is someone who is going to receive assets or profits from a trust, an estate or an insurance policy, when the conditions within the contract are met.

Balloon payment

A balloon payment is a one off, lump sum payment on a hire purchase or conditional sale agreement. They are normally made at the end of the agreement.

Bonds

A bond is an official paper given by the Government or a company to show that you've lent them money. It says that they will pay you back at an interest rate that doesn't change.

Broker

A broker is a person (or it could be an organisation) who works on your behalf to find you the best deal when you buy things like insurance, mortgage, stocks or property.

Budget

A budget is a list of all the money you've got coming into your household (your income) & all the money you spend (your expenditure), each month. If you take your expenditure away from your income, it shows you if you've got a budget deficit or a budget surplus.

Budget deficit

If you're spending more money than you've got coming in each month, you have a budget deficit.

Budget surplus

If you have money left over from your income once you have paid for all your costs, you have a budget surplus.

Budgeting

Budgeting is when you make a list of everything you spend & managing your money so you stick to this list.

Buildings insurance

Buildings insurance contributes towards the cost of repairing or rebuilding a property if something happens to it, like repairing flood damage.