Career Development Loan and Bankruptcy

faerie_3

Hi, I'm in trouble with my debts and considering bankruptcy. I've been advised by the free advice service I get through my work that this might be the best option. I have approx £15,000 of credit card debts and overdraft.

One of the companies I owe money to - the Nationwide is refusing to freeze my interest whilst I make a reduced payments (I've filled out income and expenditure forms etc). This means every three months I owe another £1000.

I am currently studying and have taken out a career development loan. I know from my loan agreement that if I go bankrupt that I will be in default of my loan agreement but don't really understand the implications of this. Does anyone know? Would I have to include my CDL in my bankruptcy?

I've not been able to get any clear advice on this and would appreciate it if anyone could help.

Thanks
F

rog2

Hi faerie,

I know that student loans are not included in Bankruptcy, but am unaware of the details of Career Development Loans.
Whilst I appreciate that you have already been given free advice, why not phone CCCS - there is a link at the top of the page (free debt counselling agencies) as they may be better qualified to advise? They could also advise regarding any 'unlawful' charges that Nationwide are charging.
With regard to paying your creditors - IF you have definitely decided on Bankruptcy, then you really ought to stop paying them ANYTHING - use the money for your BR fees.
Good Luck.

faerie_3

will make appointment with cccs -haven't decide 100% to go bankrupt its such a big decision that i want to check out what all the consequences will be - although trying to negociate with the Nationwide is v.frustrating so am beginning to seriously consider it as my debt is just escalating.

Emmzi

I am confused because Nationwide are not an official CDL provider. I think it's a regular personal loan badged as a CDL but not really, so will be treated exactly the same as eg a holiday loan.

If it is a 'proper' CDL from a time when they did them(?) I don't think you should be paying anything back if you are still studying.

http://www.direct.gov.uk/en/EducationAndLearning/AdultLearning/CareerDevelopmentLoans/DG_10033242
How do I make repayments?
The LSC pays the interest on your loan while you're learning and for up to one month afterwards. You then repay the loan to the bank over an agreed period (between 12 and 60 months) at a fixed rate of interest.

faerie_3

the nationwide are one of the credit card companies I owe money to not my CDL. I am concerned what will happen about my CDL - which I have with the Cooperative Bank - if I do go bankrupt

thanks
f

fermi

Hi faerie,

I can't tell you whether your CDL will or won't be included, but I can suggest several places you can contact in addition to CCCS.

Firstly the 'Insolvency Service' themselves. They are the people you would oversee your bankruptcy and make these vital decisions.
The have a enquiry line; the details of which can be found at:

http://www.insolvency.gov.uk/contactus/enquiryline.htm

I haven't called them myself, but I'm sure they must be able to answer this.

Two other places offering free advice on bankruptcy/insolvency issues are:

http://www.insolvencyhelpline.co.uk/

and

http://www.nationaldebtline.co.uk/

Also if you should decide to go BR, the judge will require that you have sought professional advice from a source such as those mentioned.
It would do you a lot of good to get that now, and put your mind (at least partially) at rest.