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**Danielle1981** · 02-08-2006, 10:32 AM

Bankruptcy has no bearing on getting Student loans.

**SinkingFast** · 02-08-2006, 11:14 AM

We have a son in college. All the offers we've received have been private source funding. Private sources such as banks, credit unions, etc. The offers require parent(s) signature as cosigner and have stated both student and parent(s) must be credit worthy. Since we haven't actually applied, ourselves, I can only guess a BK would factor into credit worthiness with loans from private sources. Whether or not BK impacts your ability for government based loans, I don't know.

We do have friends that have gone thru the loan process with their kids who've gone to college. Private source funding. Both the kids' and the parents' credit histories were factored into the decision making process of the loans.

**Danielle1981** · 02-08-2006, 12:03 PM

The best way, is to just ask the college. Explain your situation to the financial aid office. They are usually good about finding something for you.

**Viper** · 02-08-2006, 12:15 PM

Involuntary BK is a little different then voluntary BK. We would need more info about your case to answer all your questions.

Originally posted by emma

1) Will I be able to get a student loan after i am bankrupt? I will be starting a degree in music technology next september which I will not be able to afford without a student loan.

You might have a problem while your "in bankruptcy". Best to check with your financial aid adviser.

Originally posted by emma

2)Will it affect my dad?

Why would it? Do you have any joint debts or assests?

Originally posted by emma

3) Will they take our home? I live with my dad and we rent our house from the council

If you rent what is there to take?

Originally posted by emma

4) Will my possessions belong to them? I dont really own much and what i do will just be a drop in the ocean compared to how much I owe!

Yes

Originally posted by emma

5) What do the creditors get by me going bankrupt? Ie-why do they want me to go bankrupt?

So they can get paid.

Originally posted by emma

6) If it was my creditors who started off the proceedings, will I still have to pay to go bankrupt?

That depends. After you creditor files an involuntary petition there will be a hearing to determine if their claim is valid. If the judge finds reason not to grant their claim, you will be entitled to compensation for your legal expenses.

Here is a link with more info.

- Viper

**emma** · 02-08-2006, 01:33 PM

How does bankrupting me get the creditors paid? Is it by claiming my belongings? Even if they took everything I own they would probably only make about £300!
What about anything I buy after I become bankrupt? Will it belong to them also?
Will they be entitled to some of my earnings? I only earn, on average, £25 per week.

**StaciMM** · 02-08-2006, 02:12 PM

Involuntary bankruptcy would be for a situation when you had assets that the creditors wanted to get to. Such as if you owned a home, they could attach a lien to it but not force you to sell. If your equity is beyond the amount you can exempt, the BK court would force a sale.

BK should not impact federally funded loans. Being in default on federal loans would, however. In general, BK does not affect your extended family and you are able to keep standard items. "In general" is the only answer I can give, since I don't know more about your situation.

**StaciMM** · 02-08-2006, 02:12 PM

Emma-are you in the US? Keep in mind that 99.9% of this board's posters are, and the laws in other countries could be very different.

**emma** · 02-08-2006, 02:47 PM

Nope, Im in England. I know most of the people here are American but so far its the only place thats helped me at all! Ive tried ringing my local CAB but they only take calls from 11am tilll 1pm (pretty stupid in my opinion), Ive tried ringing the investigators who sent me the letter (they refused to explain anything to me saying 'if you dont understand what we intend to do there is no point us explaining'[!]) and Ive searched the 'net. This was the only place I found. You have all helped though, thank you

But, basically, as I don't actually own anything of any value they are stabbing themselves in the foot by bankrupting me?

**Graphic** · 02-08-2006, 03:11 PM

Well what kind of debt do you have? For example did you have a car loan you defaulted on and now owe the difference of the value they sold it for.. or do you have 30k in credit cards... or do you have a mortgage you can't pay anymore? From what I've read it's CC's.

Give some more info and I'll look thru the laws in England.. I'm sure they are different. They might fall along the same lines as our bankruptcy proceedings but the exemptions etc might be different so who knows.

**StaciMM** · 02-08-2006, 03:30 PM

I don't know-I don't know what creditors can/can't do in England. Any chance of consulting with an attorney?

Originally posted by emma

Nope, Im in England. I know most of the people here are American but so far its the only place thats helped me at all! Ive tried ringing my local CAB but they only take calls from 11am tilll 1pm (pretty stupid in my opinion), Ive tried ringing the investigators who sent me the letter (they refused to explain anything to me saying 'if you dont understand what we intend to do there is no point us explaining'[!]) and Ive searched the 'net. This was the only place I found. You have all helped though, thank you

But, basically, as I don't actually own anything of any value they are stabbing themselves in the foot by bankrupting me?

**emma** · 02-08-2006, 03:32 PM

I have two credit card debts, a bank loan and I owe money to my old phone company. I also owe some money for court costs.

**emma** · 02-08-2006, 03:34 PM

Originally posted by StaciMM

I don't know-I don't know what creditors can/can't do in England. Any chance of consulting with an attorney?

I cant afford to

**LostOne0069** · 02-08-2006, 03:59 PM

I did a couple of searches and came up with a couple of sites that may help you out:

http://www.insolvency.gov.uk/

http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#1

After a quick (very quick) look through some of the information it looks like the laws are similar to the ones in the US... you'll lose anything that you own of value except what you need to live & work and anything else (if anything) will be sold to pay your creditors. Here's a snip:

You can keep the following items unless their individual value is more than the cost of a reasonable replacement:

* tools, books, vehicles and other items of equipment which you need to use personally in your employment, business or vocation;
* clothing, bedding, furniture, household equipment and other basic items you and your family need in the home.

Now, as for why the creditor is filing for bankruptcy for you? Well, according to those sites, any creditor that you owe 750 pounds or more can file a petition for bankrupcy in your behalf. Your creditor must think that they'll get more from you that way. Remember, they don't KNOW that you don't own anything. This is probably a case of a creditor shooting themselves in the foot as they'd probably get more out of you if they just worked out a payment plan or something with you. Instead, they'll bankrupt you and you walk away without having to pay them a thing.

Good luck! And please remember that virtually all the information on this site is based on US law and can be VERY different than it is in the UK.

**emma** · 02-08-2006, 04:12 PM

Thank you so much for all your help!

I feel alot more relieved now. Especially as the creditor in question has refused all my offers of payment and now will be getting considerably less than they would have done if they had accepted!
Those sites look quite good, I shall check them out in the morning(its getting on for 2am here) and I may actually sleep tonight!

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