Thread: Could my sister be charged with fraud?

My sister, who is not a responsible person, is planning to file for bankruptcy quickly before the fee goes up in April. She was going to go to University last October, then changed her mind and claimed Jobseeker's Allowance. She still received a student loan; £2k in Nov; £2k in Jan... and the final installment will be mid-April. So this would show on her bank statements. It is illegal to receive a student loan and JSA, even though the student loan is repayable. But she thinks in the current recession official receivers are too busy to check statements in straightforward bankruptcies. Is this true or should she not risk filing in case this is noticed?

It is a straightforward case, of £40,000 credit card and loan debts that she can't pay back, she has no assets, and lives with parents.

It is a very bad idea to try and hide things from the OR. The matters you mention will be checked out automatically by the OR, and any non-disclosures will attract the appropriate attention.

Why isn't your sister a responsible person?

I think you will find (not sure about this though) that student loans cannot be included in a bankruptcy.

quite right on all fronts palomino, the student loan is not included in the bankruptcy, it is a bad idea to try and hide things from the OR, although the OR's are busy they do check the last 12 months carefully

Hi, would the OR notice and act upon the bank statements showing payments from the student loan company, and JSA during the same period?

who knows, they do look at them