| Commentary

307 Eligibility for a debt relief order

| Commentary

307 Eligibility for a debt relief order

Section 251A(1) of the Insolvency Act 1986 provides that an individual who is unable to pay his debts may apply for a debt relief order (‘DRO’) to be made in respect of his ‘qualifying debts’. A ‘qualifying debt’ is a debt which1:

  1. 307.1

        is for a liquidated sum payable either immediately or at some certain future time; and

  2. 307.2

        is not an excluded debt.

However, a debt is not a qualifying debt to the extent that it is secured2.

An ‘excluded debt’ is a debt of any description that is prescribed in the Insolvency Rules

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