Q: When is a bankruptcy order discharged?
Nov 24 2009
Answered by: Clive Lewis Ask a question
Having a bankruptcy order discharged is a process that takes away the restrictions of bankruptcy and releases a bankrupt from most of the debts they owed at the date the bankruptcy order was made.
Bankrupts will normally get their discharge automatically, even if no payments have been made to their creditors, they are still making contributions under an income payments order/agreement or some of their assets have not yet been sold.
The official receiver can apply to court for a bankruptcy restrictions order, which will mean that bankrupts continue to be subject to restrictions after discharge for the period stated in that order. This will not affect the discharge of their debts. A separate leaflet called Bankruptcy Restrictions Orders is available from the local official receiver’s office or from The Insolvency Service website or from the BIS Publications Order.
When is a bankruptcy discharged?
Usually after 12 months, on the first anniversary of the bankruptcy order, but there are different dates which might apply in certain cases. If the official receiver has concluded their enquiries into the bankrupt’s affairs they may file a notice of early discharge in court. The bankrupt will be discharged on the date this notice is filed in court. A copy of the notice will be sent to the bankrupt so that they will know when they are discharged.
If the bankrupt does not co-operate with the official receiver (or the trustee, if an insolvency practitioner has been appointed as trustee in place of the official receiver), then the court may be asked to stop their discharge from taking place. An example would be if the bankrupt refused to provide information to the official receiver or the trustee.
If the bankrupt’s discharge has been suspended (stopped) before 1 April 2004, they should contact the official receiver for information about how and when they may be discharged from bankruptcy.
How do you get your discharge?
If the bankrupt is discharged automatically, they do not have to do anything to get their discharge.
If they wish, they can obtain a certificate of discharge. A certificate is not necessary in most cases, but if they need one they should write to the court that dealt with their bankruptcy. They should not write sooner than two weeks before their discharge date, giving their name, address and court number (to be taken from the latest correspondence about the bankruptcy). The court may check with the official receiver that the bankrupt is entitled to an automatic discharge. The bankrupt should receive a certificate confirming their discharge within about four weeks.
A fee of £60 is payable to the court for issuing a certificate of discharge (further copies will cost £5 each).
If the bankrupt writes to the office that dealt with their bankruptcy that office will provide a letter, at no charge, confirming their date of discharge. The bankrupt can also ask for the official receiver to advertise their discharge, but they will have to pay the costs of this before it is done.
A bankrupt will not get their discharge automatically:
• if their discharge period has been suspended, for example because they have
failed to co-operate with the official receiver or trustee;
• if the bankrupt was subject to a criminal bankruptcy order. The bankrupt should contact the official receiver for more information.
There is an excellent guide entitled 'when will my bankruptcy end?' (as well as many other guides on insolvency or bankruptcy) on the Insolvency Service websit.
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