questions about bankruptcy

[Pyyp23]

Just two questions

 

1) are student loans included in bankruptcy? I'm pretty sure it's statute barred any way but wanted to know if it would be included.

 

2) I hold the lease for a property which is the main thing I need to get away from. If I go bankrupt will that be included as a debt or will the landlord just have to take it back?

 

Regards

Pete

[debtinfo]

1) from the student loan company? and when was it taken out

 

2) what does the lease say about bankruptcy? or default?

[Pyyp23]

1) yes from the student loan company and back in 1998-2003 no payments have ever beenmade to them as my income has always been below the £15000 threshold.

 

2) not sure about that I'll check tomorrow and get back to you

[Maggie45]

Sorry i'm not good with these websites and forums, so i appologise if this is posted in the wrong place.... My partner is filing for bankruptcy and was living in England he split from his wife and came to live in Scotland their house has been repossesed and they have debt between them, if he moves back to England and i am living with him (we intend to privately rent) how does this affect me, I have a just received a divorce settlement.

[Maggie45]

My partner is filing for bankruptcy, he split from his wife in England and came to Scotland their house has been repossesed and the have debt between then, I have just received a settlement from my split from my husband. We are thinking of going back to England to rent privately, how will this affect me and the money i have received?

[National Debtline]

Pyyp: Student loans do not get written off as past of a bankruptcy order. As you have mentioned the debt could be statute barred so long asthere has been a clear six year gap without payments and written acknowledgement - and no previous legal action has been brought within the 6 year period. Be warned, however, that if your loans are new-style (Sept '98 onwards) then a deduction can still be taken from your salary if you earn more than £15,000

 

Further information on bankruptcy:

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=01_bankruptcy

 

Further information on the Limitation Act

 

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

 

Best wishes,

 

National Debtline.

Edited January 13, 2012 by National Debtline

[National Debtline]

Maggie: If the money belongs to you then it should not be affected by your partner's bankruptcy. If you have any joint financial connection with your partner it cause a bearing on your credit file, you may find it tricky to seek a tenancy privately. There could be other factors also, you may wish to call us on 0808 808 4000 so we can ensure the advice we give you is as accurate as possible.

[Pyyp23]

Thanks for the reply.

 

Correct me if I'm wrong but if a debt becomes statute barred the creditor has no right to collect the debt. So in principal if the student loan company has never collected frome in the last seven years then they wouldn't be allowed to now even if I earned over the 15000 threshold. Or does the wording of their agreement allow them to collect?

 

In response to an earlier post, I've answered my own question. In bankruptcy my lease would return to the landlord.

[sequenci]

A limitation argument bars the remedy, but not the right. If there is another means of recovering the money then it is perfectly legitimate, for example

 

1) Those with new-style student loans having deductions taken from their earnings once they earn over the threshold

2) Those with benefit overpayments having a deduction from an ongoing award of the same benefit

 

There are loads of others but I hope this gives you an idea.

 

So I guess the question is - is your student loan a new-style or an old-style one?

[Pyyp23]

I started in 98 so would have been September that year. Guess it's the new type.

 

Thanks for all the help guys.

Regards,

Pete