Debt Advice Glossary
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 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.
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.
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.
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.
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.
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.
If you're spending more money than you've got coming in each month, you have a budget deficit.
If you have money left over from your income once you have paid for all your costs, you have a budget surplus.
Budgeting is when you make a list of everything you spend & managing your money so you stick to this list.
Buildings insurance contributes towards the cost of repairing or rebuilding a property if something happens to it, like repairing flood damage.