Big a1

Situation is that I have finished university this year with a student loan of nearly £12k and interest of £30 per month being added on each month which I was not aware of.

Question is would the debt be wiped out if I declared myself bankrupt and what would be the implications be i.e buying a house etc?

I live at home and do not really have much to call my own i.e. no savings etc.

Before anyone becomes judgemental I needed the loan in order to pay fees and accomadation whilst at uni as I received no other help, so its not a 12k beer dept.

It really is just a thought and obviously if it was this easy I would assume everyone would do it, but any thoughts are welcome...

Cheers Al

JackClark

Get a job. It's less work.

mike1210

I though they were trying to re-write the law to stop people doing it but i may be wrong

mike1210

also there are other things such as not being able to have bank account for 5 odd years

ajm

I would suggest getting a job and paying it back so you don't have to walk around with your head hung in shame. Have some pride man!

Wish

iTrader: (2)

Youth of today !

Lazy sods

OllyK

Did you think it was an interest free loan or did you just not read the paperwork?

I don't think declaring yourself bankrupt it a quick fix. Also remember until you are earning over 15Kpa (IIRC) you don't have to start paying back a student loan. Do you have a job yet? If not why not? If you have an income at a level to qualify you for paying back the debt I can't see how you could be declared bankrupt.

Jamesemt

You've just got to grin and bear it, mate. I have an 8k student loan which was spent on a car I ended up getting 500 quid for (long story...).

The worst thing is that once you start paying it back, the more you earn, the more you pay...Puts me off working overtime when the Student Loans Co. takes 200 quid off me...

BUT - it was my choice, so I'm not moaning.

David Lock

Don't do it. You'll be stuffed for a long time and I doubt if you could get mortgage for a long time. This is IMHO.

davegtt

OMG, what did u think would happen when you got the loan? if you cant afford to pay it back dont get 1. hasnt your time at uni learnt you a worthy skill that should pay half decent money? cause if not why did u bother going to uni? get a job and pay us tax payers our money back

people of today eh, always want something for nothing

Petem95

One of my mates declared himself bankrupt last year after uni with 30k debts. The debts were written off, and despite everyone thinking you cant have a bank account for a year or something, well you can.

Obviously goes down badly in future when you come to get a mortgage, I dont have a mortgage but can think of various forms Ive filled out with the question "have you ever been declared bankrupt?"

IMO not worth doing it for only 12k debts, if it was over 25k then maybe... Just get some work, living at home you should pay them off quite quick.

Its virtually interest free, you only pay slightly more than inflation.

Big a1

Get a job, now theres a thought .

Obviously thats what i'm trying to do, still doing the p/t job that I have done since I was 15 at moment.

Please do not try and judge me as having no work ethic as I have worked for the entirity of my degree sometimes doing two jobs, however since finishing uni trying to get a job is proving quite tricky. Everyone wants experience etc and I have probably sent out 40-50 applications over the course of the last four months.

However the point of the thread was to just try and establish if this would be feasable or just more hassle than its worth.

Harry_Boy

Speak to the bank in the first instance. As a last resort, consider a voluntary arrangement, but bankruptcy is ridiculous just for one loan that can be negotiated and/or rescheduled...

Big a1

'Did you think it was an interest free loan or did you just not read the paperwork?'

I realised that it wasn't interest free I just assumed it being based on the rate of inflation would be less than £30 per month.

ajm

You should have included all mitigating circumstances in your initial post if you wanted to be fairly judged in the "Court of Non Scooby Related"!

OllyK

I know I was at uni when they first came out. Paid mine off with my first wage packet after I graduated. Mind you, the loans were only "top" back then.

Freak

student loans arent a pressing loan though
If you arent earning enough over the threshold, payments stop.
I have no idea how much my student loan is at the moment ( i finished uni several years ago) and i dont really care to be honest.
The payments arent exactly high either!

Not like bailiffs will come round or anything for non payment!.

tmo

Do not declare yourself bankrupt, major mistake. Work through it.

Bankruptcy will basically **** the rest of your life up, its like a decent stalker, you think you have lost it, turn round and its lurking in the shadows.
Mortgage – nope
Ok so you rent a place (cash only) needs some basic necessities
Credit card – Errr nope
Fridge from comet sir ?? – nope only if you have the cash
Washing machine from Currys ?? nope only if you have the cash
Car finance – nope

You will have a credit rating lower than a snakes belly for eternity.

fast bloke

you can declare yourself bankrupt. The court will decide to fix the loan or write it off. In your case it will probably be fixed that you must pay a small amount each week to SLC. You are considered an undischarged bankrupt until the amount decreed by the court is paid. While you are undischarged you can't have assets or credit. You can have a bank account which allows you to have salary paid in, dd's paid out, but no overdraft facility/cheque book/switch card. Once the amount ordered by the court is cleared, or if the loan is written of as unrecoverable, you become a discharged bankrupt. After a year you will be able to have credit facilities and own assets again, but you will pay through the nose for at least 6 years after becoming discharged. Typical mortgage rates for discharged bankrupts might be arounf LIBOR +2%. The difference on a 100k mortgage would be around £300.00 per month. (Over 20k extra until your credit history is clean)

I wouldn't do it

Chip

Get a bloody job. You went to Uni to get a better education to therefore get a better job. Dont expect others to bail you out now youve finished your 3 years at Uni.Out of interest what degree did you do.

Youth of today want everything for nothing. Prince Charles was right.

Chip

Big a1

Ok thanks for the informed replies, doesn't really sound like a good plan.

It really was on the basis that I never recieved any help for the payment of fees etc and I feel so pi55ed off that I cant get a proper job and the paperwork for my loan came through it was just like another kick in the teeth.


I know its not really a 'important' loan as such but its just going to be £100+ out of my wages until i'm 50.

With reference to the tax payers comment, I have been paying tax contribuitons for years.

Big a1

I have never had any body bail me out of anything....I tried to go to bloody work the day after I had been a passenger in a near fatal car crash because I have to help my mother out with money. I have worked as a postman in the morning and done a late shift at my other job in order to pay fees so dont bloody be so damned insulting to people.

Wish

iTrader: (2)

Big A1 .....


Err how i could add

ajm

Don't get too emotional about it, chip's just got an offensive gob on him at the moment because he's got swollen *********!

Reffro

One thing that was missed here was that under the new bankruptcy rules this year, student loan liabilities remain whatever you do, to prevent students avoiding paying back loans.......

Plus as was said you don't have to pay back the loan until you start earning over the average wage for a UK worker, currently about £24k.

redwrx

This is quite an interesting thread, as i know someone who is just about to hit the unfortunate circumstance of bankrupcy...

There is no shame in it, for some it cant be helped ...especially when its caused though an accident, and your self employed, and your insurers claim you 'broke the wrong bones'.... and so the small print reduces the amount of claim.....as in the case of the person i know.

From my knowledge, bankrupcy does not **** your life up ...it might make things a bit restrictive, but You can get credit, and loans afterward, and you can hold a bank account....but if you have no assets, before the bankrupcy ...if you cant afford what you have in debt, then being told you cant have anything else aint really gonna worry you to much.

For some bankrupcy is the beginning of a new life, they just have to wait 12 months..

Big a1

I'm not gettin emotional about anything, the thread was meant mearly to ascertain whether bankruptcy would be feasable in the situation I have detailed.
I already knew it probably would not be possible I just wanted to understand what grounds made this the case.

I understand this is a forum and people are unaware of a persons background but this I would think would stop people from making sweeping statements.

Dazza01

Im amazed ur actually have the ***** to post this thread, and especially on Scoobynet, now there's a question WHY SCOOBYNET ? why not a saxo forum or on lax power, do u own an scooby ? if yes sell it and pay ur debts.

Tax dodger that's what you are,

Well there's ur answer to paying ur debt off, passenger in a near fatal car crash, bet you have a good solicitor thou don't you

Big a1

Well if this is the case then there you have it.

However I thought the threshold for repayments was around 10-12k.

Big a1

Tax dodger?? how can this be when I have been paying contributions for years.

Make a claim for my injuries, yes I couldn't drive for over a month, and I couldn't lift weights or eat properly( quite important as I have been bodybuilding for over five years) but I would never dream of trying to sue someone over what was an accident because thats not my mentality.It is obviously yours though.

I have had to sell my car because of my situation, I now drive around in a £180 sierra.

I know about work ethic and making sacrifices!