How long does bankruptcy last?
Bankruptcy generally lasts for a year; however, it is down to the discretion of the court. The court can postpone the discharge and the discharge they have agreed to may not even free you from liabilities in the first place and the unrealised assets may not be safeguarded anyway. The discharge may free you from most of the debts you owe since the bankruptcy order however exceptions include debts from fraud, certain crimes and fines.
The court can also agree to release debts such as personal injury or money owed under family proceedings. It is important to know that if you have been declared bankrupt in the last 15 years you cannot automatically be discharged and you can only apply to the court for a discharge 5 years after your order and the court can even prolong the discharge after that.
It is possible that there may have been asses owned before the discharge or even before the bankruptcy began which had not yet been dealt with. These assets will usually be property, insurance or pension policy or an interest in a will or trust fund. These assets are down to the trustee to deal with and they do not have to take any action for a number of years. After the trustee has finished dealing with your case you will also be obliged to let the Official Receiver know about any assets that may have been acquired. These assets could be claimed to pay back your creditors.
It is your responsibility to be careful with your finances especially after the date of your bankruptcy order. However if you create new debts you could face another bankruptcy order which has potentially serious consequences such as prosecution if the debts were incurred without disclosing your bankruptcy.
Share your experiences
Please note: The views expressed in community areas of this site do not necessarily reflect or represent the views of Law on the Web, its owners, its staff or contributors.
Bankruptcy is the legal status that a person or organisation enters into when it can no longer pay its debts and honour its obligations to its creditors. Find out more
Facing bankruptcy can be a frightening experience. There are many complications involved that may leave you feeling confused and not knowing where to turn. Having a solicitor to guide you through the process can bear huge benefits.Find out more
Bankruptcy is a tough experience. When someone is made bankrupt, their possessions, home, income, in fact all their assets are used to pay their outstanding debts.Find out more