Insolvency
15. Where after the date of sequestration of a liable graduate’s estate, they receive, or are entitled to receive, a loan in accordance with these Regulations–
(a)the sheriff shall not, in fixing an amount under subsection (2) of section 32 of the Bankruptcy (Scotland) Act 1985(1) treat the loan as income of the eligible student;
(b)for the purpose of subsection (6) of that section the loan shall not be treated as estate vesting in, or requiring to be conveyed or delivered to, the eligible student’s permanent trustee; and
(c)any debt or liability to which the eligible student is, or may become, subject in respect of the loan shall not be treated as a debt or liability–
(i)for the purposes of the sequestration (or of any offer of composition to the permanent trustee); or
(ii)from which the liable graduate is discharged on the expiry of a period after the date of sequestration, under or by virtue of section 54 or 75(4) of that Act (or on an order being made under paragraph 11 of Schedule 4 to that Act as respects the liable graduate and the permanent trustee).
1985 c. 66; section 32 was amended by the Child Support Act 1991 (c. 48), Schedule 5, paragraph 6, the Pensions Act 1995 (c. 26), Schedule 3, paragraph 14 and the Welfare Reform and Pensions Act 1999 (c. 30) Schedule 2, paragraph 1; and prospectively by the Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3), sections 17, 18 and 19 and schedule 1.