EXPLANATORY NOTE
(This note is not part of the Order)
These Rules amend the Insolvency Rules 1986.
They amend the definition of “excluded debt” in Rule 5A.2 so as to exclude from the scope of a Debt Relief Order any obligation arising from a payment out of the social fund by way of crisis loan or budgeting loan.
They also amend Rule 6.223 so as to include such an obligation in the list of debts that survive an individual’s bankruptcy, and Rule 12.3 to prevent such an obligation being included as a ‘provable debt’ in a bankruptcy.
Rule 2 makes transitional provisions.
A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the Policy Unit, The Insolvency Service, 21 Bloomsbury Street, London WC1B 3QW and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.