Bankruptcy & Student loans?

Question

I had student loan's approx 5 Years ago. Once leaving Uni I was unemployed, then I worked round the country, I have now settled & registered on the Electorol Register. The Debt collectors are now demanding stupid amounts of cash from me, I cant afford it. ( Heads in the Sand - I know this does'nt help ) I live with my partner whom owns the house we live in, the only thing in my name is my car (which It aint worth much) & my bank account (not much in it).

If I claim bankruptcy will my Student Loans & Collectors debt be quashed?

How will bankruptcy effect my chance of getting a mortgage in a couple of years? remembering my partners house will be the security.

Many Thanks

Neaco · Accepted Answer

I thought the government recently removed the ability (or loophole) to claim bankruptcy to relieve the burden of a Student Loan (debt).

And why not? I had to struggle with repaying a student loan debt, and it took me 8 years - why should you get off scot free if you can't manage your own finances.

Eric Jones · Answer

reputable lender for many years.How will your partners house be considered as security for your mortgage? Go and see Citizens Advice Bureau who will advise you and draw up a repayment schedule with your creditors.IMO forget any idea of mortgage until these debts have been completely paid off. You must have known that Student Loans would not write off these debts and that one day they would catch up with you.I have no sympathy for your plight only anger that I as a taxpayer subsidise people like you! Grow up pay up or face the consequences! Eric

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Richard Buttrey · Answer

Which university was it, and what was the course?

I'd hazard a guess that English language and grammar didn't feature. I counted at least 11errors the first time I read through your posting, all of which makes me wonder if my taxes have been wisely invested.

Regards

Grumpy old man.

__ Richard Buttrey Grappenhall, Cheshire, UK __________________________

Jason Power · Answer

What a helpful bunch!! I was in the same position (and still am really) call them explain your situation and agree a monthly repayment especially explain that you haven't been trying to avoid them you just haven't been in a position to repay.

failing that if the debt collectors do turn up to clear away all your worldly possesions you may lose your car but if you don't own anything of enough value to clear the debts they may refer it back to the SLC. Whatever you do DO NOT get another loan to clear this one, you're just going to be digging yourself deeper.

let me know how it works out.

BR

Jason

Zoe Brown · Answer

How much debt are you  in ? How many debtors do you have ?

Doug Ramage · Answer

IIRC, the relevant date was around 1 September 2004 - after which student loans could not be included in the bankruptcy petition. There was also an earler date - 1 Jul 2004 for pre 1998(?) loans?

Discharged bankrupts are likely to find competitve loan/mortgage terms hard to come by.

Paul · Answer

Creditors, surely!

Zoe Brown · Answer

yep - my mistake !!!

Bankruptcy & Student loans?

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