Thank you adviceguy111, thats great info I will have a look at the website

Hi thanks for the reply. The problem is the interest. I owe 65000 and have to make payments of £208 a month which is a lot of money when your on a low income ( not all students are over here making loads as the govt like to make out) even if I could make these payments, they only just cover the interest charged each year so there is absolutely no incentive to get a weekend job and work 7 days a week to meet payments when the loan isnt getting any smaller. What the govt need to do is work out an individual agreement for every student based on their income and amend interest rates to ensure that the loan is manageable. If they are prepared to throw money at young students (and they do make it very easy) (and of course all young people want to better themselves if they can) then they must accept that many wont make it big and wont be able to pay back a loan. I do believe the current situation is unfair and extremist. I originally left NZ to work to pay off the loan but never got a great job that paid well enough to keep up with the loan. I know you said your in the same boat so would love to hear what you think about this. I really dont want to go down the road to bankruptcy but cant see another solution right now. What really amazes me though is the lack of understanding of the IRD, you are treated like some kind of criminal. Even the evil banks are willing to re-negociate mortgage loans if people are struggling but the IRD wont even listen, they just keep repeating like a mantra "if you cant meet your payments you can be arrested" Arrghhh

Many thanks for your help, seems there is no answer as the NZ govt are sticking their heads into the sand on this one. Will keep pursuing the Bankruptcy options

Hi, sorry wasnt very clear. I live in the UK and I am touch with the IRD and make payments twice a year but cant keep up with the interest. I have talked till Im blue in the face to the IRD but they will not do anything to make it easier the loan just keeps growing. I am interested in whether i can start insolvency proceedings from the UK while remaining living in the UK. Any advice from anyone who has done this or knows anything about it is very much appreciated.

What is the insolvency website, had a look but not sure I have found the right one. I am considering this way too, have been making payments as I can afford but on a low income and cant keep up with payments either, my family live in nz so disappearing is not an option. Def agree with all its such a draconian approach, attempting to make profits from young students and then blaming the students when it all goes belly up!!