With regards to David's suggestion that you should go for bankruptcy...(posted 7990 days ago)I am not a financial advisor so I can only give you my opinion, not financial advice.
I think David may be steering you towards buying a service that he is involved in. Is that correct David?
His advice encourages you to pay to capitulate without contesting what the lender is trying to do.
He also suggests that bankruptcy is a relatively painless solution.
His advice is predicated on the idea that you do owe more than £750 - yet he does not know the circumstances of your case, so how can he make that assumption?
I think that if you were mis-sold a MIG, you may owe nothing at all. "Nothing at all" is less than £750.
If the lender did a really bad job of marketing your property, you may again owe nothing at all. "Nothing at all" is still less than £750.
In one post, David implies that if you contest the lender's action you may increase your costs and therefore the size of your debt and have it still end in bankruptcy. Yet at the same time he promoted bankruptcy as an option that limits the amount you will eventually have to pay whatever the actual debt load.
I find this element of his advice contradictory.
When I try to find my way through the contradictions, the answer they lead me to is that - depending on the amount you think you do actually owe - it may be in your interests to contest the statutory demand, possibly increasing your costs if you do, and only afterward opt for bankruptcy if your lender subsequently takes you to court for a hearing over the details of the shortfall and if it wins. I think it is unlikely to do that because you are a broke student but one can never rule out the possibility.
However, my point is that bankruptcy is open to you whichever option you take. In one option you may achieve more and actually avoid bankruptcy but can fall back on bankruptcy if necessary. In the other, you simply go bankrupt. I think one of these options is clearly more attractive than the other.
David points out that as a student bankruptcy will be less painful for you than for most, which I think is probably true.
However, it has much more impact on your credit record and - in some cases - job prospects - than losing a mortgage shortfall hearing.
Lee