Bankruptcy – how and when it can end :Cross Stitch – Money, tax and benefits
If you have been made bankrupt, you are usually freed from your debts after 12 months. Find out what you need to do when your bankruptcy comes to an end, how you can update your credit files and when your assets will be returned to you.
Bankruptcy normally lasts for 12 months. After this time, you are usually automatically discharged (freed) from the debts owed in your bankruptcy and the bankruptcy restrictions. These are the rules you agree to when you are made bankrupt.
Your discharge can be earlier if the Official Receiver (an officer of the bankruptcy court) finishes looking into your affairs and your creditors don’t object.
There are times when your bankruptcy can be annulled (cancelled). To find out more, read the guide below, ‘Can your bankruptcy be cancelled?’.
Delay in being discharged
Your discharge can be delayed if:
- you don’t co-operate with the Official Receiver or trustee
- you break the bankruptcy restrictions
- you were issued with a criminal bankruptcy order by the court
You should contact your local Official Receiver to confirm when your bankruptcy will be discharged.
You should contact your local Official Receiver to confirm when your bankruptcy will be discharged.
The Official Receiver will review your bankruptcy file, usually five months after you have been made bankrupt. If your creditors don’t object, you could be discharged early. If you are being discharged early, the court will send you a stamped copy of a ‘notice of early discharge’. This document will confirm the date of your early discharge, which is unlikely to be within six months of your bankruptcy being declared.
If you are being automatically discharged, you won’t get an official notice confirming your discharge.
Getting proof of your discharge
To get proof of your bankruptcy discharge, you can:
- ask your Official Receiver to write confirming the discharge date
- get a ‘Certificate of Discharge’ from the court – these cost £70 and £5 for extra copies
- ask your Official Receiver to advertise your discharge
Even after your discharge, you must still co-operate with your Official Receiver or trustee and provide any information they ask for. They may still be dealing with the disposal of your assets, for example, selling your house.
You are still responsible for certain debts not included in your bankruptcy, for example, court fines and student loans. It is your responsibility to pay these debts and failure to do so can lead to court action. Organisations like Citizens Advice can help you find ways to deal with the debts not included in your bankruptcy.
If you are making payments from your spare income towards your bankruptcy debts, you must continue to make them, even after your discharge. These payments are known as Income Payment Orders or Income Payment Agreements. They last for three years.
Official records will be updated after your discharge, but you will have to contact the credit reference agencies yourself to amend your credit file.
The Individual Insolvency Register
The Individual Insolvency Register is an online database of insolvency cases in England and Wales. Your bankruptcy will be removed from this register three months after your discharge.
Details of a property’s ownership are recorded in a public register of land interests for England and Wales called the ‘Land Registry’. Notices are entered into this register about your bankruptcy. The entries are removed when the property is no longer a part of your bankruptcy estate (one of the assets being used to pay your debts).
Your home or business address will be linked to your bankruptcy and details kept on a public register called the ‘Land Charges Register’. These entries remain on record for a minimum of five years after the start of your bankruptcy.