AD | Collaborative post
If you’re going through the process of making yourself bankrupt, then you’ll have mixed feelings. You’ll be relieved, but you’ll also possibly feel sad, angry at yourself and maybe even ashamed. Bankruptcy is a fresh start, however, and if you get financial advice from the Creditfix website, you can come back bigger and better.
You’re probably also wondering exactly what happens once you’re discharged from your bankruptcy.
Are all your debts wiped?
All the debts included in your bankruptcy order are written off. There are some sorts of debts that are never included in bankruptcies and you’ll still have to pay them. These debts include student loans, magistrate court fines and maintenance payments.
When will you be discharged from bankruptcy?
Usually people are discharged 12 months to the date the bankruptcy order was made. Occasionally the discharge will be later.
What causes delayed discharges?
While you’re bankrupt, you have to cooperate fully with the official receiver (OR) and trustee. If they ask for information, you must submit it, for example. If you refuse to cooperate, the OR might ask the court to prevent your discharge from happening; this is known as suspension of discharge.
You’ll be told by the court what you must do in order to get your discharge.
When does your income payment agreement end?
If you have enough income to make additional payments after your bankruptcy order is made, then you’ll be asked to do so. These payments will carry on for as long as specified by the order. If your income changes you must tell the court in order to have the agreement changed accordingly.
Will your belongings be returned to you?
Your discharge doesn’t automatically mean you’ll get your items back, even if they haven’t been sold. They’ll stay in the bankruptcy estate until the OR decides what to do with them.
Your home, on the other hand, may be returned to you if it’s not been sold within a set period, usually three years after the bankruptcy order.
Any new assets you gain after your discharge aren’t affected by the bankruptcy order and can’t be claimed by the OR or by the trustee. The only exception is any PPI payments you reclaim if they were made before you became bankrupt.
When will the bankruptcy restrictions order end?
This order might not end with your discharge; these orders vary in length and you’ll be told at the time how long yours will be, if you have one.
How do I prove I’ve been discharged?
Your discharge is an automatic process so you may not receive proof. If you need proof you can either email Discharge Enquiries for a free letter of confirmation or call 03006780015. You can also ask the court that dealt with you for a Certificate of Discharge, which costs £70. You can only ask for proof after your discharge date.
If you ask for confirmation, you’ll need to provide your full name, dob, current and previous addresses, your NI number and your court reference number.
Changing public records
Even after discharge, your details will be in several public records. Some are removed automatically after set periods of time, while you’ll need to ask for some to be removed.
Your details are automatically removed from the Insolvency Register three months after discharge, but you’ll need to send confirmation to all of the credit reference agencies to ask for your file to be updated. Your bankruptcy will remain on your file for six years after the order is made.
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