BusinessBusiness RecoveryStudent bankruptcies treble

Student bankruptcies treble

The number of students declaring themselves bankrupt more than tripled in 2003.

According to a report in today’s Independent, the Student Loans Company has revealed that 899 students filed for bankruptcy last year as a means of writing off student loan debts. The equivalent number for 2002 was 276.

Insolvency practitioners have longed feared that students would take advantage of a loophole in government legislation allowing student loan debts to be cancelled out by bankruptcy.

The statistics were released by higher education minister Alan Johnson in response to a written question from Phil Willis, the Liberal Democrat education spokesman.

The Insolvency Service has said that student loans are on the list of debts that can be cancelled out by bankruptcy. But the government is expected to close the loophole as part of the government’s controversial higher education bill, which passed its second reading last week by an embarassingly narrow majority of five.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

6m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

6m Emma Smith, Managing Editor