What is a Discharged Bankrupt?
As a discharged bankrupt you are free from the debts owed at the date of the bankruptcy and free from the restrictions of bankruptcy. If a bankruptcy restriction order or bankruptcy restriction undertaking is in place then the restrictions of bankruptcy will continue even after discharge.
If you have any questions about being discharged from bankruptcy then please feel free to ask (ask piggy).
As a discharged bankrupt you will certainly face challenges obtaining credit in the future. Examples include:
- Obtaining a mortgage after bankruptcy
- Obtaining a car loan after bankruptcy
- Credit repair after bankruptcy
All the above are possible as a discharged bankrupt though it is important to do the homework and understand how your bankruptcy affects your credit worthiness. It's important to understand what lies ahead and how to best position yourself for a mortgage or any other commitments you may wish to undertake.
Becoming a discharged bankrupt
Becoming a discharged bankrupt usually happens automatically on the first anniversary of the bankruptcy, however, early discharge may be possible. Automatic discharge will not be possible if:
- Your discharge period has been suspended, for example because you have failed to co-operate with the Official Receiver
- You are subject to a criminal bankruptcy order.
No action is required to become automatically discharged and a certificate of discharge is available at a cost from the Official Receiver.
