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Student Loan
bewildered1
Posts: 69 Forumite
I'm in low paid job and have decided I would like to study for a degree course to improve my prospects. However, I'm not sure how student loans affect bankruptcy and more specifically whether or not it's classed as income when it comes to getting an IPA.
It was last updated in 2015 so I don't know how relevant it is today but I found this site...
https://www.insolvencydirect.bis.gov.uk/TechnicalManual/Ch25-36/Chapter31/part7/part3/part_3.htm#31.7.78
Specifically "31.7.78 Student loan income - It should be noted that where a bankrupt is in receipt of a student loan this is not income which can be claimed under an IPA/IPO."
Just so I'm reading it correctly does that mean that that the OR cannot claim that this money can be used for paying household bills thus increasing my income and in turn meaning a higher chance of getting an IPA?
Also, does that statement also hold true for Maintenance Loans? It is applied for and paid pack in the same way as a student loan.
I hope that makes sense!
It was last updated in 2015 so I don't know how relevant it is today but I found this site...
https://www.insolvencydirect.bis.gov.uk/TechnicalManual/Ch25-36/Chapter31/part7/part3/part_3.htm#31.7.78
Specifically "31.7.78 Student loan income - It should be noted that where a bankrupt is in receipt of a student loan this is not income which can be claimed under an IPA/IPO."
Just so I'm reading it correctly does that mean that that the OR cannot claim that this money can be used for paying household bills thus increasing my income and in turn meaning a higher chance of getting an IPA?
Also, does that statement also hold true for Maintenance Loans? It is applied for and paid pack in the same way as a student loan.
I hope that makes sense!
0
Comments
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Hi bewildered1
The wording of your interpretation looks a little garbled to me, so I'll paraphrase - if your income consists solely of student loans and maintenance loans, you can't have an IPA in bankruptcy.
I should add that if you continued to work alongside studying during your bankruptcy, the OR could look at those wages and their potential to form the basis of any IPA. However this tends to be rather unlikely unless any such side jobs are leaving you significantly better off, as opposed to simply helping make ends meet.
Hope that helps.
Dennis
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Sorry, I should have worded it a little more clearly.
I'm looking at doing an OU course and continuing to work full time. I'm hoping that the OR won't give me an IPA based on what I earn. What I wanted to know is if the OR would consider a student loan and maintenance loan as income. If it is then I would definitely be given an IPA and studying wouldn't be worth it.0 -
Student loans are not classed as income, no.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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