Insolvency Act 1986, section 251H

The moratorium period

Part 7A Debt relief orders

(1)The moratorium relating to the qualifying debts specified in a debt relief order continues for the period of one year beginning with the effective date for the order, unless—

(a)the moratorium terminates early; or

(b)the moratorium period is extended by the official receiver under this section or by the court under section 251M.

(2)The official receiver may only extend the moratorium period for the purpose of—

(a)carrying out or completing an investigation under section 251K;

(b)taking any action he considers necessary (whether as a result of an investigation or otherwise) in relation to the order; or

(c)in a case where he has decided to revoke the order, providing the debtor with the opportunity to make arrangements for making payments towards his debts.

(3)The official receiver may not extend the moratorium period for the purpose mentioned in subsection (2)(a) without the permission of the court.

(4)The official receiver may not extend the moratorium period beyond the end of the period of three months beginning after the end of the initial period of one year mentioned in subsection (1).

(5)The moratorium period may be extended more than once, but any extension (whether by the official receiver or by the court) must be made before the moratorium would otherwise end.

(6)References in this Part to a moratorium terminating early are to its terminating before the end of what would otherwise be the moratorium period, whether on the revocation of the order or by virtue of any other enactment.

Definitions used in section 251H 5

qualifying debt

(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.

Defined in s.251A(2) · see it in the full Act

“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
debt relief order

“debt relief order” means an order made by the official receiver under this Part;

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

(7) In this Part the date on which an entry relating to the making of a debt relief order is first made in the register is referred to as “the effective date”.

Defined in s.251E(7) · see it in the full Act

“the effective date” has the meaning given in section 251E(7);

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

(2) In Schedule 6 “the debtor” means the company or the individual concerned.

Defined in s.386(2) · see it in the full Act
debtor

“debtor” means—

(a)

in relation to an application for a debt relief order, the applicant; and

(b)

in relation to a debt relief order, the person in relation to whom the order is made;

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

Cases considering section 251H 6

Secretary of State for Work & Pensions v Payne & Anor

[2010] EWCA Civ 1431 · 14 December 2010Interprets

The court uses section 251H to identify the usual 12-month moratorium and the limited grounds for extension, supporting the conclusion that the period exists for objections and investigations rather than continuing recovery. (see paras [17]; [74]-[75])

Secretary of State for Work and Pensions v Payne and another

[2011] UKSC 60 · 14 December 2011Defines

The provision is identified as governing the normal one-year duration of the debt relief order moratorium (see para [40]).

Christina Sharples v Places for People Homes Ltd.

[2011] EWCA Civ 813 · 15 July 2011Defines

Defines the usual duration and possible early termination or extension of the debt relief order moratorium. (see para [28])

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