Q&As

The EU Insolvency regulation does not recognise debt relief orders (DROs) granted under Part 7A of the Insolvency Act 1986 (IA 1986). If someone enters a DRO and remains in the UK, what steps could an EU creditor take to enforce their debt in the UK? Could they rely on the discretion of courts under IA 1986, s 251G, or would they simply not have a remedy unless the person went to live in the EU?

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Produced in partnership with Caroline Clark
Published on LexisPSL on 29/07/2019

The following Restructuring & Insolvency Q&A produced in partnership with Caroline Clark provides comprehensive and up to date legal information covering:

  • The EU Insolvency regulation does not recognise debt relief orders (DROs) granted under Part 7A of the Insolvency Act 1986 (IA 1986). If someone enters a DRO and remains in the UK, what steps could an EU creditor take to enforce their debt in the UK? Could they rely on the discretion of courts under IA 1986, s 251G, or would they simply not have a remedy unless the person went to live in the EU?

The EU Insolvency regulation does not recognise debt relief orders (DROs) granted under Part 7A of the Insolvency Act 1986 (IA 1986). If someone enters a DRO and remains in the UK, what steps could an EU creditor take to enforce their debt in the UK? Could they rely on the discretion of courts under IA 1986, s 251G, or would they simply not have a remedy unless the person went to live in the EU?

Section 251A of the Insolvency Act 1986 (IA 1986) provides for a debt relief order (DRO) to apply to qualifying debts, defined as unsecured debts for a liquidated sum payable immediately or at some certain future time. The application for a DRO must include a list of the qualifying debts to which the debtor is subject at the date of the application under IA 1985, s 251B(2). When the DRO is made, a moratorium commences that prevents any of the creditors specified in the

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