Hello,

I unfortunately find myself at a point in my life where I was made redundant, owe approx £30,000 and have very little income and no assess.

I have decided bankruptcy seems the most logical solution as I have had to retrain so will be doing a degree for the next 3 years. The only issue I have is trying to understand what payments I will need to make, if any.

So my income is as follows:

Student Finance (Including Parents and Dependent Allowance) - £12000 (Paid for 39 weeks only)

Tax Credits - £168 a week

Child Benefit - £48 a week

I have 3 young kids and a wife.

My problem is I have asked both Citizens Advice and Stepchange but both are unsure if my Student Loan can be classed as income. I was quoted the following:

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.

So does this mean my income would be tax credits and child benefit? I find it hard to believe that they would ignore my major source of income.

Any help appreciated, for reference the figures are within a few £'s as I do not have exacts but am happy to find them if needed.

Thanks.

Answering my own question in case someone else has similar circumstances.

Student finance cannot be counted as income as its a loan. If you revive an adult dependants grant (£2757) this can be classed as income.

Answering my own question in case someone else has similar circumstances.

 

Student finance cannot be counted as income as its a loan. If you revive an adult dependants grant (£2757) this can be classed as income.

That makes sense.

Have you gone through a list of all things, where bankruptcy will need to be disclosed or might cause a problem ?

Renting a house

Banking

Insurances

You need to understand whether going bankrupt will increase any costs. If might be that you enter some things like Insurances in your wifes name, but read any declarations or assumptions about whether your bankruptcy would need to be declared.

Hello

This might help answer any questions you have

https://www.insolvencydirect.bis.gov.uk/technicalmanual/