Glossary - S

Secured Debt

Loan amount for which the borrower pledges one or more assets of equal or greater liquidation-value as a security which may be forfeited in case of a default. Also called secured loan.

Secured Loan

Loan agreement under which a borrower pledges a specific asset or property which the lender can seize in case of default.

Statutory Demand

A statutory demand gives a person 21 days warning to pay the debt. After that the statutory demand has runs it course and it can followed by a bankruptcy petition.

Surplus Income

This is the amount you are left with if you subtract all your living expenses such as housing costs, food, clothing travel etc.) from your income (wages, pensions, benefits etc). This is the amount of surplus incomem available for the creditors