12. Where after the date of sequestration of a liable student’s estate, he or she receives, or is entitled to receive, a loan in accordance with these Regulations–
(a)the sheriff must not, in fixing an amount under section 32(2) of the Bankruptcy (Scotland) Act 1985(1) treat the loan as income of that student;
(b)for the purpose of section 32(6) the loan must not be treated as estate vesting in, or requiring to be conveyed or delivered to, the student’s permanent trustee; and
(c)any debt or liability to which the student is, or may become, subject in respect of the loan must 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 student 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 student 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