Bankruptcy Discharge

At the date of discharge you are free from your bankruptcy debts. You will also be free of the bankruptcy restrictions unless they are prolonged by a bankruptcy restrictions undertaking or order.

For many, bankruptcy discharge presents the fresh start they long awaited for. Below details some of the questions you may have.

Can you get credit after discharge?

Yes, maybe. As a discharged bankrupt you will certainly face challenges obtaining credit in the future, but it is not impossible. You may be able to obtain the following types of credit:

  • Mortgage
  • Credit card
  • Loan
  • Phone contracts
  • Insurance contracts
  • Car finance

You should research credit after bankruptcy for more information.

How do you get discharged?

It is automatic and so you do not need to do anything. It will happen on the first anniversary of your bankruptcy, which means you will be bankrupt for 12 months.

Keep in mind that your discharge can be suspended. If you do not comply with your obligations then either the official receiver or trustee can apply to the court to have your discharge suspended. It will be suspended indefinitely until an obligation is met or it will be suspended for a specified period of time.

Proof of that you have been discharged

If someone requires proof that you have been discharged from bankruptcy then you should establish whether they need a formal certificate. You may be able to use a confirmation letter from the official receiver, which is free, as proof instead.

A formal certificate of discharge must be obtained from the court. You will need to pay a fee, which stands at £70 for 3 copies. I suggest that once you have the certificates, you photocopy them and use the photocopies if possible.

Organisations that you may need to present a certificate of discharge to include:

  • Finance organisations (mortgage)
  • Professional bodies
  • Credit referencing agencies
  • Employers (for example, in law or finance)
  • Regulators

Is there a record of your bankruptcy discharge?

The credit referencing agencies will usually pick up on the fact that your bankruptcy has been discharged through public notices. Once you have been discharged it will help you greatly to consider repairing your credit.

Co-operating after your discharge from bankruptcy

Bankruptcy discharge does not release you from your obligation to co-operate with the trustee or the official receiver. The administration of your bankruptcy estate can continue after your bankruptcy discharge.