Erudio student loans and bankruptcy

mill1980

I have a question which just occurred to me in the early hours of this morning. I had an old slc student loan from 1997 that was deferrd for many years then set up on my dmp when I got into financial difficulties. The deferment ended cuz I earned over the threshold silly really cuz I could of paid it off well before hand if I not kept deferring! Anyway....loan now sold by government to Erudio student loans and I just before I was made bankrupt on 17th April. So I just thought student loans are not included in bankruptcy and I'll just need pay it back over the 5 years (as per t&c of original loan) separately to my IPA. My trustee wasn't sure who Erudio were when I went through all my income/expenditure last week I explained they bought the old student loans n he thought like me I'd prob have to pay it back separately.

I phoned Erudio on Friday to say I was br and what do I do and the girl says she really didn't know if I have to pay it back and when they got note of my br they would write to me.

Now looking online this morning wondering if it would be included in my bankruptcy??! Does anyone know or will I just need to wait and see. In any event the trust put£30 a month down for it in my income/expend sheet just in case I have to pay it separately as this is what it would be per month over 5 years.

fermi

All loans made under the Education (Student Loans) Act 1990 or the Teaching and Higher Education Act 1998 were made non provable in bankruptcy, meaning that they are not included or written off by it.

That does not change with it being sold on.

So if you are due to make payments on them, that should be accounted for by the OT/trustee in your budget.

mill1980

It hadn't even crossed my mind that It would be included before today. And the trustee has budgeted for so it fine in any event. The girl on the phone and her line manager however where not so sure that it would continue to be required to paid back. The things I've read online this morning got me wondering. Suppose I'll just wait until I hear from them they will get their money if they want it.

ericctheking

fermi wrote: »

All loans made under the Education (Student Loans) Act 1990 or the Teaching and Higher Education Act 1998 were made non provable in bankruptcy, meaning that they are not included or written off by it.

That does not change with it being sold on.

How can this even be the case?
It is not like you owe the government back anymore. How can a private company get these benefits? Is this fair and just?

fermi

It's the case as that is what the law says.

Whether you like it or think it fair or just is not going to change it.

ericctheking

The law also says that a CCJ can only be taken out against residents in the UK.
I guess anyone leaving overseas could just not pay?

fermi

The law also says that legal proceedings can be taken using your last known UK address. There are also various EU types of proceedings you can take against someone there, and conventions and reciprocal agreements that allow UK judgements to be enforced in some overseas jurisdictions. Would they bother? Who knows?

alastairq

ericctheking wrote: »

The law also says that a CCJ can only be taken out against residents in the UK.
I guess anyone leaving overseas could just not pay?

ABsolutely. It's really down to enforcement.

However, should that person return to the UK, then ..if the creditor has obtained enforcement orders, they can be carried out.


Of course, if that person happens to have assets still in the UK, then these can be seized against.