Insolvency Act 1986, section 251A

Debt relief orders

Part 7A Debt relief orders

(1) An individual who is unable to pay his debts may apply for an order under this Part (“a debt relief order”) to be made in respect of his qualifying debts.

(2) In this Part “qualifying debt” means (subject to subsection (3)) a debt which—

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

(b)is not an excluded debt.

(3)A debt is not a qualifying debt to the extent that it is secured.

(4) In this Part “excluded debt” means a debt of any description prescribed for the purposes of this subsection.

Definitions used in section 251A 2

qualifying debt

“qualifying debt”, in relation to a debtor, has the meaning given in section 251A(2);

Defined in s.251X(1) · see it in the full Act
excluded debt

“excluded debt” is to be construed in accordance with section 251A;

Defined in s.251X(1) · see it in the full Act

Cases considering section 251A 7

Secretary of State for Work and Pensions v Payne and another

[2011] UKSC 60 · 14 December 2011Limits

A liquidated debt payable immediately or at a certain future time is a qualifying debt unless excluded. The repayment liabilities in issue were accepted to fall within that definition (see paras [9]; [12]; [32]). The provision excludes the secured portion of a debt from qualifying-debt status (see para [9]).

Child Maintenance and Enforcement Commission v Beesley & Anor

[2010] EWCA Civ 1344 · 24 November 2010Limits

The provision is described as establishing the application for a debt relief order in respect of qualifying debts. (see para [18]) The provision excludes excluded debts from qualifying debts. The court relies on it to show that child support arrears are outside the debt relief order regime. (see paras [18]; [53])

David Terence Forbes v Interbay Funding Limited

[2025] EWCA Civ 690 · 6 June 2025

Section 251A was cited to show that a debt is not qualifying debt for debt relief order purposes to the extent that it is secured. This comparison supported the court’s construction of the Regulations. (see para [62])

What each judgment says about section 251A is in the case-law panel in the full Act.