Outstanding student loan after bankrupcy?

jmadgin

Hi again,

Once again I'm emailing on behalf of my girlfriend who is out of her bankrupcy as of May this year. We recently recieved a letter however from Capquest recovery compay on behalf of Student loan company in Glasgow. She apparently owes £3500 from 8 years ago when she was at uni. Obviously, since then she has become insolvent and bankrupt and has no debt on her experian credit record at present.

Does this debt still exist?? We don't want to pay it due to the bankrupcy but Capquest are threatening us with CCJ's and legal action if we don't. I have asked for the original signed documents from the loan but they haven't replied to my letters.

Any advice would be appreciated!!!

John

terryw

Sorry but student loans are not wiped out with bankruptcy.

the poster formerly known as
terryw

PixiePie

However if she hasn't had any contact with them for 6 years it will be statute barred.

fermi

Nope. The bankruptcy would not have cleared these.

But as PixiePie has said, it's possible they could be statute barred.

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

Student loans

Student loan agreements are simple contracts and this gives the Student Loans Company (SLC) six years from the date you last paid or acknowledged the debt to go to court to enforce the agreement. There are two sorts of student loans and different rules apply depending upon when you took out the loan.

Old style student loans

Old style or 'mortgage' student loans are consumer credit agreements. Payments cannot automatically be deducted from your wages. The SLC has to go to court before they can enforce the debt against you. This means that the Limitation Act can apply if you have not paid or acknowledged the debt for over six years.

WARNING Asking for the loan to be deferred could count as acknowledging the debt and start time running again.

New style student loans

From September 1998 new style or 'income contingent' student loans include rules to say that repayments will be automatically deducted directly from your wages or through your tax return if you are self-employed. This means that the SLC are still allowed to take money from your wages for a loan over six years old as they do not have to go to court to do so