Discharged Bankruptcy

By Author: Elliott Parker
Total Articles: 4717
Comment this article

When you are made bankrupt there a certain restrictions are imposed on you as a result of filing for bankruptcy. You will lose control of your assets, not be able to obtain credit over £500, be a director of a ltd company or be in certain employment such as insolvency practitioner, pub licensee or member of parliament.

When you are discharged from bankruptcy you are now free from the restrictions of bankruptcy and you are now released from the debts that you owed before filing for bankruptcy.

For the majority, you will be discharged automatically after a 12 month bankruptcy period. If the official receiver files a notice in court before that time to state that they have concluded their enquiries into your affairs then you could be discharged earlier than 12 months.

You can be discharged later than 12 months if the official receiver feels that you have failed to comply with them fully or not being truthful throughout your bankruptcy then they may instruct the courts to have your discharge suspended. If you have your discharge suspended then the restrictions of the bankruptcy will still apply, even ...
... after you have been discharged.

Once discharged from bankruptcy, you will be entitled to a bankruptcy discharge certificate (at a small cost) which is obtainable from the court that you went bankrupt at. Your bankruptcy mark on your credit file can now also be changed to state discharge bankrupt. A Bankruptcy discharge certificate is not necessary unless you really need one and you will be able to request it 2 weeks before your discharge date by writing to the courts with your name, address and bankruptcy number.

The effects being discharged from bankruptcy, apart from being freed from the money that you owed is that you can now obtain credit again without having to mention your bankruptcy. You are still expected to pay the debts that fell outside of your bankruptcy for example personal or family debts, money owed in child support and maintenance or debts arising from personal injury claims and certain fines and fees. You can now carry on a business without restrictions that applied during your bankruptcy. You are still obligated to assist the official receiver towards your bankruptcy and if you have been subject to an income payment agreement you are still required to continue with these payments.

Many people wonder if there will be able to obtain credit and mortgages again after being discharged from bankruptcy. There a specialist lenders that will lend to people even if you have previously been made bankrupt. You will be expected to pay at a higher rate due to the risk that you pose to the lenders but as time goes on you can start rebuilding a good credit history to make yourself less of a risk and more credit worthy to future creditors.
About Author:
Bankruptcy Insolvency Advisor from Clear Insolvency.

http://www.clearinsolvency.co.uk