Bankruptcy precedent for student loans?

hazelzeb

I'm currently in the process of declaring bankruptcy as I'm seriously struggling and I am aware that student loans can't be included in any bankruptcy amounts, but wondered if there were any extenuating circumstances in which they would be?

I'm never going to be in a position to pay them back (on long term incapacity for mental health issues) after having them on my back for over 15 years now (some of which I've paid, others I was unwell or not earning enough) in addition to other debts, I just want a clean slate.

Any advice is much appreciated.

Tixy

What sort of student loans do you have? old pre 98 mortgage style loans? or newer income contingent loans?

If old style have you always deferred them? or have you at some point earned enough to start repayments on them?

CLAPTON

the old style loans can be included in bankruptcy but the post 1998 can't
if you are never going to earn enough to make any payments why is that a problem?

hazelzeb

Old style 1995 to 1999.

It's a psychological issue. They're always going to be there. I'm always going to have to defer, they will never go away.

Sometimes I've paid (even when I couldn't afford to) sometimes I've deferred.

fermi

CLAPTON wrote: »

the old style loans can be included in bankruptcy but the post 1998 can't

Neither type can.

Tixy

You'll just need to keep deferring it - in which case it should just be a once a year issue. Unless you earn enough of course in which case it would be right to pay it back.

They won't usually be cancelled until you reach the age of 50.

Though according to this site there are occasional circumstances where they may be cancelled early.
http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,3867066&_dad=portal&_schema=PORTAL

If you are permanently unfit for work and can provide evidence to show that you receive disability related benefit we may also be able to cancel your liability to repay your loan.

From the info you've posted you perhaps wouldn't qualify for this at the moment but if you do in the future it might be something to consider.