Bankruptcy - How and When it can end?

The period followed by the issue of bankruptcy order is generally the term of your bankruptcy. The general term of bankruptcy is normally for duration of 12 months following the date of order issued but it is likely to change based on various conditions and restrictions.

The Bankruptcy term can be a period of 12 months following the date of declaration by court or can be reduced or extended or even annulled based on the various rules and laws. You can normally be discharged earlier if the official receiver feels that he has completed all your affairs and has complete satisfaction on the genuineness of data provided by you. This early discharge is completely based on the discretion of the official receiver and your creditors. On the contrary, your bankruptcy discharge can also be delayed if you are bound to cross the restrictions levied or you do not co-operate with the official receiver during the bankruptcy tenure. A criminal bankruptcy issued by the court can also lead to delayed discharge at times.

It is also possible that sometimes your bankruptcy can be cancelled or annulled by the court. This means that all details pertaining to your bankruptcy will be reversed and you will come back to your financial status before bankruptcy. But you will only receive assets that have not been sold by the court and also you are responsible only for the debts that are not yet paid by the court through settlement. There are various reasons for which your bankruptcy can be cancelled. Your bankruptcy is eligible for cancellation if your creditors are ready for alternate mode of payment other than bankruptcy or if all the debts and fees have been paid in full during the term. You can also apply for your bankruptcy to be annulled if you think that the order should never have been issued. In cases where you are not sure of the chances of cancelling your bankruptcy, you can look out for expert advice to resolve things.

You can get in touch with your official receiver after about 5-6 months after bankruptcy to confirm on your discharge procedure and period. He would look into your papers and confirm based on the level of completion of debt clearance and also based on the acceptance from your creditors. The court normally informs your early discharge through a copy of ‘notice of early discharge’ that will inform the date of discharge. Any official discharge after completing your 12 month term will not be informed by a court notice.

It is also mandatory that you get a proof of your discharge from bankruptcy from wither the court or the official receiver. You can request the official receiver to give you in writing about your discharge date or to advertise your discharge from bankruptcy. Some of these services might be charged by the official receiver. Alternatively you can also get a discharge certificate from the court which would charge you £60.

You will still be responsible for certain duties even after your bankruptcy term like cooperating with your official receiver or paying off your other debts that were not included in your bankruptcy order. You are also required to pay the court fees incurred during the bankruptcy process. In case you are in any Income payment order, it would continue for the defined period even after your discharge from bankruptcy. These orders normally last for duration of three years from the time of creation. The order can also be monitored and changed for increase or decrease of the amount to be paid. In case you have been handed over a bankruptcy restrictions order or a bankruptcy restrictions undertaking, the limitations posed during your bankruptcy will not be terminated and can continue for a minimum of 2 years to a maximum of 15 years.

The assets that were seized by the court during your term of bankruptcy will not be given back to you on discharge, even if they are still to be sold and debts settled. But any asset that you purchase after your discharge remains with you and cannot be claimed in any manner by the court or your creditors. The official court records will be updated as soon as you are discharged and the insolvency register maintained by the insolvency service which is an online data about individuals issued with bankruptcy and IVA will remove your case after 3 months of discharge. Also any ownership details pertaining to your assets during bankruptcy are entered in the ‘Land Registry’ record for England and are removed after your discharge. You also have to take ownership for updating your credit records, you might have to get in touch with the credit reference agencies and submit your discharge certificate copy to initiate further actions.

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