What does being discharged from bankruptcy mean?

I made myself bankrupt last year for several reasons, but have now been “discharged” from my bankruptcy. What exactly does this mean and is there anything I need to do?

Your finance and business Q&As answered by Lisa Lappin, Restructuring and Insolvency Director at Baker Tilly Mooney Moore 

The standard duration of bankruptcy is 12 months, regardless as to whether you are adjudicated bankrupt on foot of your own, or a creditor’s petition.

After this year, you will automatically be discharged from your bankruptcy unless the term is extended by the court as a result of your non-cooperation with the Official Receiver or Trustee.

Essentially, after the 12 months of bankruptcy you are “discharged” from the restrictions imposed as a result of being bankrupt and most importantly, you are released from all of the liabilities that were provable in your bankruptcy.

Despite being discharged, your Trustee in bankruptcy can remain in office and you have an ongoing duty to assist the Trustee if required. The Trustee will continue with the realisation of any assets that formed part of the bankruptcy estate, including in many cases your home. In addition, any income payments agreement or order can continue for up to three years, even following discharge.

Although some debt solutions will write off your debts – or reduce how much you owe – this is not true when it comes to debt consolidation. It can more be viewed as transferring what you owe. That’s why you should look for professional advice like Remolino bankruptcy trustee can give you to reduce your debts, and bring back the balance of your financials.

Some bankrupts can be the subject of a Bankruptcy Restrictions Order / Undertaking that does not extend the duration of the bankruptcy beyond 12 months, but can extend some restrictions for a period of up to 15 years post discharge.

For general information on bankruptcy you should contact a licensed insolvency practitioner or visit the money, tax and benefits and managing debt sections of www.nidirect.gov.uk

The Insolvency Service or your Trustee should be able to provide you with information regarding your specific circumstances.

Find out more about Baker Tilly Mooney Moore – visit www.bakertillymooneymoore.co.uk