PART 8INTEREST AND INSOLVENCY

Insolvency94

1

In England and Wales—

a

there shall not be treated as part of a bankrupt’s estate or claimed for the bankrupt’s estate under section 307 or 310 of the Insolvency Act 198662 any sum payable to an eligible student by way of a loan and which the eligible student receives or is entitled to receive after the commencement of the bankruptcy, whether the entitlement arises before or after the commencement of the bankruptcy; and

b

there shall not be included in a person’s bankruptcy debts any debt or liability to which that person is or may become subject in respect of any sum payable to an eligible student by way of a loan and which that person receives or is entitled to receive—

i

in the case of a bankruptcy commencing before 1st September 2004, after the commencement of the bankruptcy; or

ii

in the case of a bankruptcy commencing on or after 1st September 2004, before or after the commencement of the bankruptcy.

2

In Northern Ireland—

a

there shall not be treated as part of a bankrupt’s estate or claimed for the bankrupt’s estate under Article 280 or 283 of the Insolvency (Northern Ireland) Order 198963 any sum payable to an eligible student by way of a loan and which the eligible student receives or is entitled to receive after the commencement of the bankruptcy, whether the entitlement arises before or after the commencement of the bankruptcy; and

b

there shall not be included in a person’s bankruptcy debts any debt or liability to which that person is or may become subject in respect of any sum payable to an eligible student by way of loan and which that person receives or is entitled to receive—

i

in the case of a bankruptcy commencing before 1st March 2005, after the commencement of the bankruptcy; or

ii

in the case of a bankruptcy commencing on or after 1st March 2005, before or after the commencement of the bankruptcy.

3

In this regulation, “loan” means a loan pursuant to regulations made by the Secretary of State, the National Assembly for Wales or the Welsh Ministers under section 22 of the 1998 Act, including the interest on the loan and any penalties or charges incurred in connection with it.