Student Bankruptcy

Student Bankruptcy has never been a common occurrence, but there were a number of individuals who declared bankruptcy upon graduating in order to avoid repaying their student loan. This was never possible for loans taken out prior to 1998, but due to a legal loophole, it was possible for a short time for those who took out loans after 1998 when the student loan system changed. However, this loophole was closed by the government with the Higher Education Act of 2004, which means that student loans are no longer provable when it comes to bankruptcy, and the borrower is still liable to replay the student loan in full.

Before you declare bankrupty, get help and advice on your debts

All student loans are now repayable, even after bankruptcy, so if you were considering it as a means of writing off your debt, you might wish to think again as your student loan would still remain. If you are experiencing serious debt problems, seek help from the Citizens Advice Bureau or an independent advisory service.