Insolvency Act 1986, section 251K

Objections and investigations

Part 7A Debt relief orders

(1)Any person specified in a debt relief order as a creditor to whom a specified qualifying debt is owed may object to—

(a)the making of the order;

(b)the inclusion of the debt in the list of the debtor's qualifying debts; or

(c)the details of the debt specified in the order.

(2)An objection under subsection (1) must be—

(a)made during the moratorium period relating to the order and within the prescribed period for objections;

(b)made to the official receiver in the prescribed manner;

(c)based on a prescribed ground;

(d)supported by any information and documents as may be prescribed;

and the prescribed period mentioned in paragraph (a) must not be less than 28 days after the creditor in question has been notified of the making of the order.

(3)The official receiver must consider every objection made to him under this section.

(4)The official receiver may—

(a)as part of his consideration of an objection, or

(b)on his own initiative,

carry out an investigation of any matter that appears to the official receiver to be relevant to the making of any decision mentioned in subsection (5) in relation to a debt relief order or the debtor.

(5)The decisions to which an investigation may be directed are—

(a)whether the order should be revoked or amended under section 251L;

(b)whether an application should be made to the court under section 251M; or

(c)whether any other steps should be taken in relation to the debtor.

(6)The power to carry out an investigation under this section is exercisable after (as well as during) the moratorium relating to the order.

(7)The official receiver may require any person to give him such information and assistance as he may reasonably require in connection with an investigation under this section.

(8)Subject to anything prescribed in the rules as to the procedure to be followed in carrying out an investigation under this section, an investigation may be carried out by the official receiver in such manner as he thinks fit.

Definitions used in section 251K 5

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
specified qualifying debt

“specified qualifying debt” has the meaning given in section 251G(1).

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
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

Cases considering section 251K 3

Howard, R (on the application of) v The Official Receiver

[2013] EWHC 1839 (Admin) · 28 June 2013

Applies the objection and investigation procedure to show that creditors have a statutory opportunity to challenge a debt relief order and that the Official Receiver must consider objections. (see paras [83]; [174]; [195]-[200])

Secretary of State for Work and Pensions v Payne and another

[2011] UKSC 60 · 14 December 2011

The provision permits creditor objections during the moratorium to the order, inclusion of a debt or recorded debt details (see para [11]).

Secretary of State for Work & Pensions v Payne & Anor

[2010] EWCA Civ 1431 · 14 December 2010

The court uses section 251K to explain that creditors may object and that investigations may occur during the moratorium, supporting the purpose attributed to that period. (see paras [74]-[75])

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