Legal Guides

We use plain and simple English to give you an overview of the most common areas of law.

A small glossary for Insolvency

Here’s a quick rundown of some of the words you’ll come across when it comes to Insolvency. Some of these words are only ever used in legal documents and solicitor’s offices (some, quite frankly, sound a bit medical).


The state of being legally responsible for something.


The process of winding down a business.

Floating charge

A way for a company to borrow money.


Means you have enough money to pay your debts.


Means you don’t have enough money to pay your debts.

DISCLAIMER: This article should not be regarded as constituting legal advice in relation to particular circumstances. This article is merely a general comment on the relevant topic.

Published on 8th March 2013
(Last updated 7th May 2021)