Part 5Debt management and relief

Chapter 4Debt management schemes

Various

130Regulations

1

It is for the Lord Chancellor to make regulations.

2

The power to make regulations is exercisable by statutory instrument.

3

A statutory instrument containing regulations is subject to annulment in pursuance of a resolution of either House of Parliament.

4

But subsection (3) does not apply in the case of a statutory instrument that contains either or both of the following—

a

the first regulations under a particular section of this Chapter;

b

any regulations under section 118(6);

c

any regulations under section 120 that amend section 98 of the Courts Act 2003 (c. 39);

d

any regulations that amend section 122 or 123.

5

In such a case the statutory instrument may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.

6

Regulations may make different provision in relation to different cases.

7

Regulations may make any or all of the following provision if the Lord Chancellor thinks it is necessary or expedient—

a

supplementary, incidental or consequential provision;

b

transitory, transitional or saving provision.

8

Provision under subsection (7) may, in particular, amend section 122 or 123 (including by making provision for further grounds of appeal).

9

In this section (except in subsection (4)(a) to (c)) “regulations” means regulations under any provision of this Chapter.

131Main definitions

1

In this Chapter—

  • “affected creditor” has the meaning given by section 122;

  • “approved scheme” means a debt management scheme that is approved under section 111;

  • “debt management scheme” has the meaning given by section 109;

  • “debt repayment plan” has the meaning given by section 110;

  • “non-business debtor” means any individual who—

    1. a

      is a debtor under one or more qualifying debts, but

    2. b

      is not a debtor under any business debts;

  • “period of protection” has the meaning given by section 133;

  • “qualifying creditor” means a creditor under a qualifying debt;

  • “scheme operator” means the body that operates a debt management scheme;

  • “specified debt” means a debt specified in a debt repayment plan;

  • “supervising authority” has the meaning given by section 129.

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132Expressions relating to debts

1

All debts are qualifying debts, except the following—

a

any debt secured against an asset;

b

in relation to a debt repayment plan which has been requested or arranged, any debt which could not, by virtue of the terms of the debt management scheme, be specified in the plan.

2

A business debt is any debt (whether or not a qualifying debt) which is incurred by a person in the course of a business.

133Periods of protection

1

A “period of protection”, in relation to a non-business debtor, is a period which begins and ends as specified in this section.

2

The period begins if, and when, the debtor makes a request to the operator of an approved scheme for a debt repayment plan to be arranged in accordance with the scheme.

3

The period ends as follows—

a

if a debt repayment plan is not arranged in consequence of the request: when the decision is made not to arrange the plan;

b

if a debt repayment plan is arranged in consequence of the request: when that plan ceases to have effect.

4

But if other debt management arrangements are in force in relation to debtor immediately before he makes the request, the period does not begin unless, and until, a debt repayment plan—

a

is arranged in consequence of the request, and

b

comes into effect in accordance with section 121(2).

5

In this section the reference to other debt management arrangements which are in force has the same meaning as such references in section 121.