Student Loans pre 2004

frankzafka

Hi. Am looking for some pointers.

I have three student loans pre 2004 (97, 98 and 99). I went bankrupt in 2006 and I guess I assumed that student loans were not written off. I have just come across some information that suggests the contrary. So,

a) should these loans have been written off during the 2006 bankruptcy?

b) does it matter if I did or did not list them as creditors (I don't have records to confirm either way)?

c) where is the best place to get the information I need to answer these questions (legal, official receiver etc)?

Thanks.

fermi

No, they cannot be written off be a bankruptcy in 2006. Sorry.

http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part1/part1.htm

40.24 Student loans
(amended November 2012)

Student loans have been made under several pieces of legislation and their status depends on the legislation under which they were made and the date of the bankruptcy. The current position is that in all bankruptcy cases where the order was made after 1 September 2004, all outstanding student loans are not provable debts and thus not released in a bankrupt’s discharge from bankruptcy URL="http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part1/Notes/Notes.htm#35"]Note 35[/URL.

On 1 July 2004 the Higher Education Act 2004 was implemented, which changed the student loan legislation and made separate provisions for student loans made under the Education (Student Loans) Act 1990 and the Teaching and Higher Education Act 1998.

Where the bankruptcy order was made on or after 1 July 2004, all student loans made under the Education (Student Loans) Act 1990 (often referred to as mortgage style loans) were made non-provable in bankruptcy with the consequence that they were not released on discharge.

Loans under the Teaching and Higher Education Act 1998 (often referred to as income contingent loans) were similarly made non-provable in bankruptcy, with effect from 1 September 2004, following implementation of regulations applicable to the Higher Education Act 1998. Since 2004 regulations have been repealed and new regulations introduced. The current regulations were introduced in 2009 URL="http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part1/Notes/Notes.htm#36"]Note 36[/URL.

Where bankruptcies occurred prior to these dates, student loans may be treated as provable debts and can be included in the bankruptcy and released on discharge. The relevant dates are 1 July 2004 for loans under the Education (Student Loans) Act 1990 and 1 September for loans made under the Teaching and Higher Education Act 1998.

No part of a student loan may be claimed as part of the bankruptcy estate, as after-acquired property or as part of an income payments order or agreement

frankzafka

Thanks for solving that in one fell swoop.

fermi

No probs.

Just to be clear. Whether they are written off in bankruptcy or not has nothing to do with whether they are old or new style loans, or the date the loans themselves were taken out.

It simply hinges on the relevant date you went bankrupt. If you went BR before the date that the exemption kicked in for your type of loan, then it is written off. If your BR date was after, they are not.