Can she cancel out her student loan by declaring herself bankrupt?
If so, what repercussions would this have? It’s becoming increasingly common to see students experiencing severe debt problems, and at the moment declaring bankruptcy means that student debts are written off after the discharge from the bankruptcy. However that could change if the Higher Education Bill becomes law in July this year – it could close that loophole. Dawn – do the same bankruptcy regulations apply in Scotland as in England? They differ procedurally and in Scotland bankruptcy is termed sequestration as well, so there are differences with bankruptcy law that affects England and Wales. Due to serious illness, Karl in Brighton is on incapacity benefit and isn’t likely to work for some time. He gets 89 per week in benefit and has debts with High Street banks and student loans totalling 22,000. He’d like to declare himself bankrupt but can’t afford the 390 in court costs and receivers’ fees. Is there any help he could get? It’s absolutely a last resort and what we always advise
