Regulation 39 Insolvency

In England and Wales there shall not be treated as part of a bankrupt’s estate or claimed for his estate under section 307 or 310 of the Insolvency Act 1986^f1 any sum payable to an eligible student by way of a loan and which he receives or is entitled to receive after the commencement of the bankruptcy, whether his entitlement arises before or after the commencement of his bankruptcy. No debt or liability to which a bankrupt is or may become subject in respect of any such sum shall be included in his bankruptcy debts.

In Northern Ireland there shall not be treated as part of a bankrupt’s estate or claimed for his estate under Article 280 or 283 of the Insolvency (Northern Ireland) Order 1989^f2 any sum payable to an eligible student by way of a loan and which he receives or is entitled to receive after the commencement of the bankruptcy, whether his entitlement arises before or after the commencement of his bankruptcy. No debt or liability to which a bankrupt is or may become subject in respect of any such sum shall be included in his bankruptcy debts.