Notes for Guidance - Bankruptcy (Scotland) Act 2016 (as amended)

A critical illness policy would be treated as an asset in the same way as any other type of policy under section 78 of the Act.

When the policy becomes payable prior to, or during the relevant period of the bankruptcy, the trustee would be entitled to the proceeds. If there was also an element of regular income this amount should be included when a Debtor Contribution Order is made, or if a variation was required, in accordance with section 90 or 95 of the Act. (see section 8).