Sarah,(posted 7182 days ago)A couple of other points I forgot. If you declare insolvency and are then subsequently discharged (12 months later or less) there is nothing to stop you paying off the loans which you feel you are morally obliged to pay. It may be you would be able to pay a certain amount to your creditors during the insolvency period but that would be down to the OR, they are, of course, obliged to leave you enough to live on. Before declaring inslovency try offering the lender the amount it costs to do it(around £400, you may get it reduced if you are on low pay but I'm not sure). You could offer this amount or less as a full & final settlement on a take it or leave it basis. Some accept. Be aware too that a creditor will always argue that if you are paying off other loans that they are the major creditor and that the lion's share of any loan repayments should go to them. You should also qualify for legal aid if you are on low pay, have you looked into that ?? You could fight any legal case and then, if it goes pear shaped, declare insolvency the day after. Good Luck.
Mark.