The Education (Postgraduate Master’s Degree Loans) Regulations 2016

Effect of borrower insolvency on postgraduate master’s degree loans

97.—(1) In England and Wales—

(a) any sum payable to student by way of a postgraduate master’s degree loan under these Regulations which the student receives or is entitled to receive after the commencement of that person’s bankruptcy, is not to be treated as part of the bankrupt’s estate or claimed for the bankrupt’s estate under section 307, 310 or 310A of the Insolvency Act 1986(1) whether the entitlement arises before or after the commencement of the bankruptcy;

(b) 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 postgraduate master’s degree loan is not to be included in that person’s bankruptcy debts when the person receives or is entitled to receive that sum before or after the commencement of the bankruptcy;

(c) any sum payable to a student by way of postgraduate master’s degree loan which the student receives or is entitled to receive before or after the approval of that person’s individual voluntary arrangement under Part 8 of the Insolvency Act 1986 is not to be treated as part of any arrangement approved under section 258 or 263D of that Act, whether the entitlement arises before or after the approval of the arrangement; and

(d) any debt or liability to which that person is or may become subject in respect of any sum payable to a student by way of postgraduate master’s degree loan is not to be included in that person’s individual voluntary arrangement when that person receives or is entitled to receive that sum before or after the approval of that arrangement.

(2) In Northern Ireland—

(a) any sum payable to a student by way of a postgraduate master’s degree loan under these Regulations which the student receives or is entitled to receive after the commencement of that person’s bankruptcy, is not to be treated as part of the bankrupt’s estate or claimed for the bankrupt’s estate under Article 280, 283 or 283A of the Insolvency (Northern Ireland) Order 1989(2) whether the entitlement arises before or after the commencement of the bankruptcy;

(b) any debt or liability to which that person is or may become subject in respect of any sum payable to a student by way of a postgraduate master’s degree loan is not to be included in that person’s bankruptcy debts when the person receives or is entitled to receive that sum before or after the commencement of the bankruptcy;

(c) any sum payable to a student by way of a postgraduate master’s degree loan which the student receives or is entitled to receive before or after the approval of that person’s individual voluntary arrangement under Part 8 of the Insolvency (Northern Ireland) Order 1989 is not to be treated as part of the individual voluntary arrangement approved under articles 232 or 237D of that Order, whether the entitlement arises before or after the approval of the arrangement; and

(d) any debt or liability to which that person is or may become subject in respect of any sum payable to a student by way of a postgraduate master’s degree loan is not to be included in that person’s individual voluntary arrangement when that person receives or is entitled to receive that sum before or after the approval of the arrangement.

(1)

1986 c.45; Section 307 was amended by the Enterprise Act 2002 (c.40), section 261. Section 310 was amended by the Pensions Act 1995 (c. 26), section 122 and Schedule 3, paragraph 15, the Welfare Reform and Pensions Act 1999 (c.30) section 18 and Schedule 2, paragraph 2 and the Enterprise Act 2002, sections 259 and 278 and Schedule 26.

(2)

SI 1989/2405 (NI. 19); Article 280 was amended by the Insolvency (Northern Ireland) Order 2005 (SI 2005/1455 (NI. 10)). Article 283 was amended by the Pensions (Northern Ireland) Order 1995 (SI 1995/3213 (NI. 22)) Schedule 1, paragraph 11, the Welfare Reform and Pensions (Northern Ireland) Order 1999 (SI 1999/3147 (NI. 11)) and the Insolvency (Northern Ireland) Order 2005 Articles 15 and 31 and Schedule 9.