Part III Miscellaneous and Supplemental

32 Insolvency.

1

In section 71 of the Administration Act (overpayments), after subsection (10) insert—

10A

Where—

a

a jobseeker’s allowance is payable to a person from whom any amount is recoverable as mentioned in subsection (8) above; and

b

that person is subject to a bankruptcy order,

a sum deducted from that benefit under that subsection shall not be treated as income of his for the purposes of the Insolvency Act 1986.

10B

Where—

a

a jobseeker’s allowance is payable to a person from whom any amount is recoverable as mentioned in subsection (8) above; and

b

the estate of that person is sequestrated,

a sum deducted from that benefit under that subsection shall not be treated as income of his for the purposes of the Bankruptcy (Scotland) Act 1985.

2

In section 78 of the Administration Act (recovery of social fund awards), after subsection (3) insert—

3A

Where—

a

a jobseeker’s allowance is payable to a person from whom an award is recoverable under subsection (3) above; and

b

that person is subject to a bankruptcy order,

a sum deducted from that benefit under subsection (2) above shall not be treated as income of his for the purposes of the Insolvency Act 1986.

3B

Where—

a

a jobseeker’s allowance is payable to a person from whom an award is recoverable under subsection (3) above; and

b

the estate of that person is sequestrated,

a sum deducted from that benefit under subsection (2) above shall not be treated as income of his for the purposes of the Bankruptcy (Scotland) Act 1985.