bankruptcy and student loans.

sandraroffey

recently my DIL was declared bankrupt but they wouldnt allow her student loan overpayment (something that wasnt her fault) be included in the petition. can anyone tell me why this cant be included?? seems daft that you are being declared bankrupt because you cant pay for anything BUT you are expected to pay this above everything else.

they are still chasing her for the money, its not a lot, just over a thousand pounds but when you are a single mum on benefits... she is worried. and still we cant understand why she is expected to pay this, in preference to anything else. its now got to the stage where they are going to involve DCAs. have told her she has to make contact, which she has done today. in the circumstance, i would thing they would accept a reasonable monthly payment??

dojoman

Student loans are one type of loan that cannot be included in BR.

tigerfeet2006

It is one of the few things that cannot included in BR unfortunatly and all of this should have been explained to her when she went and got advice on BR.

Who did she consult about BR?

fermi

The law was changed in 2004, so that student loans are no longer written off in a bankruptcy.

jedi82

Although, if she is on benefits, surely she shouldn't have to pay back her student loan until she was earning over a certain amount? It used to be £15k but maybe different now.

fermi

Arrears and overpayments of student loans are payable immediately in full, regardless of your income.

jedi82

ahh, didn't know that, thanks Fermi

fermi

Afraid so. I've got a small amount of arrears, so unfortunately know that 1st hand.

sandraroffey

ok. been rifling through her paperwork and it transpires that the amount she is being chased for, isnt the student loan but an over payment on a student GRANT. does this change things??

the only people she spoke to about bankruptcy was the people at the bankruptcy court; they saw student loan paper work and said that it could not be included, but does that still stand on a student GRANT?

she didnt even know that she HAD been overpaid until she started getting letters asking for it back.

the grants are listed separately on the sheet: and are shown as supplementary GRANTS, a special support grant and a parents learning allowance. they decided the amounts that were paid.

any help here??

bluehills123

I would love to hear any answers to this as I am in the same situation. I have been paying back each month ten pounds towards an overpayment of a student grant and still owe about £900. Student grants are different to loans in that they dont need to be paid back, but in an overpayment I dont know how you stand. The National Debtline put this down as a debt on the form they sent me, but I'm still not sure.

sandraroffey

jedi82. just a thing here. my youngest daughter qualified as a midwife last year and her basic is under 13k and from the first month of working and earning, student loans were taking their money.