Hi klute and welcome to the forum.

If the debt was discharged at the end of your trust deed you have nothing to fear.

A debt purchaser doesn't gain rights that the seller didn't have.

Thank you for your prompt reply, that is a relief to hear!

Much appreciated!

Hi TDA, just a query on student loans. I've got a friend who has went down the bankruptcy route rather than TDA. He was told that student loans are exempt from insolvency proceedings - that doesn't appear to be the case though given what klute has said?

CIF that was the case for me I had to pay them back, it was beacuse they were not risk assessed so you could defer them in certain circumstanses but you had to pay them back. I paid mine while in a TD but ther were not included in my outgoings no big deal now they have been repaid in full

Hello CIF.

My understanding...

When they were first introduced (early 90s) student loans were paid back like any other debt. Students figured out that they could become insolvent after graduation and dump their student debts. Enough did so for the system to change.

They changed to the current system of being salary deducted by employers. These debts cannot be included in an insolvency.

Klute appears to have one of the older type of student loans.

Cheers TDA. I'll speak to him tomorrow.

FYI I was one of the older student loans and was told by my IP and the SLC I would have to pay them back

When was yours taken out pingpong?

Is/was it salary deducted?

No I was on the old scheme where you had to apply for deferral and submit your payslips etc. Mine were paid back by DD over 5 years I graduated in 2000 so must have taken them out around 1996 onwards. I started paying them back in 2007 so only had a few payments to make after signing my TD

Hi, i have another query regarding Student Loans. I took one out between 1996-2000 and have deferred each year since then (as salary has been well under the deferrment figure.
If, in the (extremely) unlikely event that my salary goes over the threshold, would i be able to defer the loan on basis of being in a Trust Deed?

I doubt that Delboy69.

The threshold for payment is based upon your income, not upon an affordability test.

I think it would be a case of having to review your trust deed payment.

Actually...

Could one of our experts confirm whether Delboy69's student loan should be included in their trust deed please?

Is it the date of the loan that's important or the date of the insolvency?

I've managed to confuse myself now!

It's quite complicated actually, but both dates are important.

As it stands now, all student loans are exempt and are not discharged by a trust deed or bankruptcy - regardless of when the loan was taken.

Previously all student loans were included. I believe there was also a period after this where one type of student loan was included and the other not. The date of sequestration or of signing the trust deed will determine which rules apply.

I will need to check the dates etc to give a more precise answer - will try and do so this afternoon, unless one of the other experts beats me to it!