PART 9DEBT RELIEF ORDERS

CHAPTER 1Interpretation

[Notes: (1) a debt relief order under Part 7A of the Act may be made in respect of “qualifying debts” (as defined in section 251A(2)); these do not include “excluded debts” which are prescribed by rule 9.2 for the purposes of section 251A(4).

(2) “approved intermediaries” and “competent authority” are defined in section 251U of the Act for purposes of Part 7A of the Act.]

Debtor’s family9.1.

In this Part the expression “debtor’s family” has the same meaning in relation to a debtor as it has in section 385(1) in relation to a bankrupt.

Excluded debts9.2.

(1)

For the purposes of Part 7A113 of the Act debts of the following descriptions are prescribed under section 251A(4) as “excluded debts”—

(a)

any fine imposed for an offence and any obligation (including an obligation to pay a lump sum or to pay costs) arising under an order made in family proceedings or any obligation arising under a maintenance assessment or maintenance calculation made under the Child Support Act 1991114;

(b)

any debt or liability to which a debtor is or may become subject in respect of any sum paid or payable to the debtor as a student by way of a loan and which the debtor receives whether before or after the debt relief order is made;

(c)

any obligation arising under a confiscation order made under section 1 of the Drug Trafficking Offences Act 1986115, section 1 of the Criminal Justice (Scotland) Act 1987116, section 71 of the Criminal Justice Act 1988117, or Parts 2, 3 or 4 of the Proceeds of Crime Act 2002118;

(d)

any debt which consists of a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages by virtue of Part 1 of the Consumer Protection Act 1987119, being in either case damages in respect of the death of or personal injury (including any disease or other impairment of physical or mental condition) to any person; and

(e)

any obligation arising from a payment out of the social fund under section 138(1)(b) of the Social Security Contributions and Benefits Act 1992120 by way of crisis loan or budgeting loan.

(2)

In paragraph (1)(a) “family proceedings” and “fine” have the meanings given by section 281(8) (which applies the Magistrates’ Courts Act 1980121 and the Matrimonial and Family Proceedings Act 1984)122.

(3)

In paragraph (1)(b) “loan” means a loan made under—

(a)

regulations made under section 22(1) of the Teaching and Higher Education Act 1998123; or

(b)

the Education (Student Loans) Act 1990, or that Act as it continues in force by virtue of any savings made, in connection with its repeal by the Teaching and Higher Education Act 1998124, by an order made under section 46(4) of that Act; and

(c)

includes any interest on the loan and any penalties or charges incurred in connection with it.