Citation and commencement

1.  These Rules may be cited as the Insolvency (Amendment) Rules (Northern Ireland) 2013 and come into operation on 24th December 2013.

Transitional Provisions

2.  (1)  The amendment made by Rule 3(2) only applies where an application is made for a debt relief order on or after 24th December 2013.

(2) The amendments made by Rule 3(3) and (4) only apply in relation to petitions for bankruptcy where the petition is presented on or after 24th December 2013.

Amendments to the Insolvency Rules (Northern Ireland) 1991

3.  (1)  The Insolvency Rules (Northern Ireland) 1991(3) are amended as follows.

(2) In Rule 5A.3 (excluded debts)-

(a)at the end of sub-paragraph (1)(c) omit "and";

(b)after sub-paragraph (1)(d), add-

"; and

(e)any obligation arising from a payment out of the social fund under section 134(1)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992(4) by way of crisis loan or budgeting loan.".

(3) In Rule 6.221 (bankrupt's debts surviving discharge), at the end add "or any obligation arising from a payment out of the social fund under section 134(1)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 by way of crisis loan or budgeting loan".

(4) In Rule 12.03 (provable debts), in sub-paragraph (2)(b), at the end add "or any obligation arising from a payment out of the social fund under section 134(1)(b) of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 by way of crisis loan or budgeting loan".

Sealed with the Official Seal of the Department of Justice on 27th November 2013

David Ford

Minister of Justice

The Department of Enterprise, Trade and Investment concurs with the foregoing Rules

Sealed with the Official Seal of the Department of Enterprise, Trade and Investment on 27th November2013

Jackie Kerr

A senior officer of the

Department of Enterprise, Trade and Investment

EXPLANATORY NOTE

(This note is not part of the Order)

These Rules amend the Insolvency Rules (Northern Ireland) 1991.

They amend the definition of "excluded debt" in Rule 5A.3 so as to exclude from the scope of a Debt Relief Order any obligation arising from a payment out of the social fund by way of crisis loan or budgeting loan.

They also amend Rule 6.221 so as to include such an obligation in the list of debts that survive an individual's bankruptcy, and Rule 12.03 to prevent such an obligation being included as a "provable debt" in a bankruptcy.

Rule 2 makes transitional provisions.

An impact assessment of the effect that this rule will have on the costs of business and the voluntary sector is published with the Explanatory Memorandum alongside the rule on www.legislation.gov.uk.