Went to see Citizin Advice today

[ianmillington]

Hi Jan

Yes, Student Loans are specifically stated to be a debt that is not discharged by bankruptcy proceedings. However, the law is silent about IVAs. As a result, the student loans Company acknowledges that it will be bound by the decision of the creditors meeting to approve an IVA.

[kallis3]

Thank you Ian.

Dare I say that the law is an ass?

It does seem silly that some of it can be written off in an IVA, but even when you come out the other side of BR, the Student Loan is waiting to grab you round the throat!

[ianmillington]

Hi Stu

I think it will simply be down to the individual policy of each of the companies concerned. Certainly, if you don't Abbey any money, and it's a basic bank account, then there should be no real grounds for them to simply close the account.

So far as GE Capital is concerned, I do not have any direct knowledge of their policy on HP agreements entered into by people who subsequently go bankrupt and so it's a bit difficult to advise you specifically on this point.

Ian

[ianmillington]

Yes, Jan.

this topic has been a bit of a yo-yo. First student loans were excluded from bankruptcy then, a few years ago, they became included. However, when this happened a number of students went bankrupt immediately after leaving university, meaning the student loan became irrecoverable from the off. As a result, the law was reversed in July 2003, and it remained unchanged ever since. Because the legislation makes no reference to individual voluntary arrangements, it is possible to include them.

Ian

[kallis3]

I suppose I can see where they are coming from then!

If every student did that it wouldn't be worth doing student loans!

[sjbyron]

I dont know,
Bankruptcy does scare me, so I think if this variation doesnt work I will go for a DMP
with promises to raise the amount each year.

Thanks

Stu

[Adam Davies]

Hi
Good to see you posting again Ian
Regards

[ianmillington]

Thanks Andy. 'twas good to see you again on Tuesday. Glad you got back safely.

Stu - you are with a decent firm who will keep your IVA on track if they can. If you can get a variation it will probably be the right thing to do, if only from the point of view that it's better the devil you know.

If they can't get you a variation (or don't think they will get it through) then hopefully they will give you some advice to help you through the bankruptcy maze. Also, if you want to chat about the issues you are likely to face, I'll be happy to talk them through with you.

Ian

[sjbyron]

Thanks Ian,
I know I am and they have been excellent, but im really unsure about Bankruptcy.

[MelanieGiles]

Stu

If you have a read of all of the blogs on this forum about people who have declared themselves bankrupt, I think that you will be suprised at how simple the process is, and what a relief it has been to get their debt situation sorted. If, as Ian says, you are with a good IP firm - they will spend time with you discussing all of the options available to you, and hopefully dispel some of those fears you have in the event that creditors do not accept your variation.