Do you qualify for bankruptcy? Find out with our free, simple test

Start my free debt test

The Bankruptcy Service Case Study Example: Bankruptcy & University

The following bankruptcy case study is a fictitious example, designed to help you understand working situations where bankruptcy is and isn't appropriate.

A look at how obtaining a student loan may affect a bankrupt.

I have a wonderful opportunity, but one that has left me concerned. I recently declared bankruptcy, after seeing no other solution to my debt problems. However, I have now been accepted onto a university course as a mature student, but am worried about how this will be perceived. I am of course perfectly willing to inform my official receiver that I am going to be in receipt of a student loan or grant, but am worried that some of this will be taken away from me, which would leave me very short of money for living costs.

This is not a common situation, so it’s difficult to give a definitive answer. General bankruptcy regulations state that a bankrupt cannot obtain more than £500 credit without informing the creditor of their bankruptcy status. Thus, if you do this, there shouldn’t be a problem. If your loan has come through official channels, by which I refer to the Higher Education Authority Act, then the official receiver cannot touch the loan or grant. In fact, there is no pressing need to even inform the official receiver of your loan – it is after all a loan, so is not really income or count towards an increase in your assets.

Free debt counselling and advice is also available from the Money Advice Service available at: doesn't charge a fee for its bankruptcy service, but receives remuneration from the partners that we work with in order to keep operating. Those partners must charge a fee to the customer to likewise cover operational costs, and this amount will vary depending on the solution offered, and the terms of the parner. For details of these terms, please refer to the website of the organisation dealing with your bankruptcy. Upon application with, we will forward your information on to one of our specialist debt partners. You will then be contacted, and you will be able to explain your case, and expert advice will be offered in order to ascertain the most appropriate debt solution.