Looking into BR, but starting Uni in Sept. ??Student Loan??

cutie_cupcake

Hi All
My first post here.
I am a mature student who due to separation form my husband means I can no longer afford debt repayments.
I have been through CCCS and have a DMP set up, BUT my Gas/Elec has just gone up and there is now a failed gym membership to add to list of creditors (was on my outgoing sheet, but one missed payment snowballed into loads of fees etc)
I am seriously considering BR, I rent privately, and my car is probably only worth £2000 max.

My question is, if I go for BR asap, would I be able to get the student loan I have already applied for?? (It's a reduced loan of £2300)

Many thanks in advance
CK

fermi

If it's a loan through the student loan company, then BR shouldn't cause any major problem with it.

NeverAgain_2

...My question is, if I go for BR asap, would I be able to get the student loan I have already applied for??...

Possibly, because a student loan cannot be included in your bankruptcy.

I know you don't want to include it, but from the loan company's point of view, bankruptcy is a lot less relevant to their lending decision.

I don't think there's a problem applying for any loan while bankrupt, provided you tell the lender.

cutie_cupcake

I posted this in student forum too, someone replied saying that I can still receive a Student loan even if Undischarged Bankrupt.
Is this definitely the case? (Not questioning other person's replies, just double checking I have my facts right!!)
I was under impression could not take ANY credit.
Thanks to all who advising me xx

ensenar

I spoke to the student loans company this week, as a mature student taking a teacher training coursein September, and they said that my being an undischarged bankrupt is not relevant to them and does not affect my application. I will send a copy of b/r to them, as that's a condition of bankrupty ( state B/R when applying for credit)

fermi

Yes. They are correct.

A student loan isn't subject to credit checks, so you won't be refused it because of the bankruptcy.

Also, in bankruptcy, the restriction is that you must not take out credit of more than £500 without informing the creditor of the bankruptcy.

If you tell the prospective creditor, then there is no problem with taking out the loan, even if it's more than £500.

NeverAgain_2

...I was under impression could not take ANY credit...

As I mentioned, you can have any credit provided you tell the lender you are a bankrupt.

But 99.9 per cent of lenders will say 'no', so bankrupts know there's no point in asking.

The Student Loan Company is in a unique position because its loans cannot be included in bankruptcy.

Just for completeness, you can apply for a low value loan - I think it's up to £500 - without telling the lender you are bankrupt, although it's still likely you would fail the credit check.

cutie_cupcake

Thank you
I think I was worried as I am hoping to apply for BR before I start in September, and worried the courts will either not allow me to receive a student loan or take it off me or something!!

fermi

They won't do either, so relax.

Lokolo

fermi wrote: »

Yes. They are correct.

Of course I am! How dare anyone not believe me.

cutie_cupcake

Hope not offended, Lokolo!!
You have all explained brilliantly, I posted in this forum first, before found the student one.
I just wanted to get the facts clear in my mind, as this is all new to me!!

Thank you, you've all been a fantastic help xx