How Long Does Bankruptcy Last?
You may be freed from your obligations under the bankruptcy order after one year, however you may not be freed of certain liabilities.
If you have previously been declared bankrupt (within the last 15 years), you will not be automatically discharged. You will be able to apply to the court for a discharge 5 years after the date of your current bankruptcy order. Even then they may refuse or delay your application.
Can I Become Bankrupt Again?
Yes. Bankruptcy deals with your debts up to the date of the Bankruptcy Order, therefore any debts incurred after this time can technically end up in another Bankruptcy Order being called against you, which could lead to more serious action being taken against, such as prosecution, especially if you failed to disclose your previous bankruptcy when obtaining your debts.
Enterprise Act 2002
Bankruptcy went through major changes in 2002 with the introduction of the Enterprise Act.
This can be cut down to 3 main changes:
A limit of three years may be placed on the Trustee's rights to realise equity in your home (this was previously open ended).
Harsher penalties imposed on those who are considered to have brought about their bankruptcy through reckless or irresponsible behaviour. Restrictions after bankruptcy could last for a further two to fifteen years.
In certain circumstances you may be discharged from bankruptcy after one year (previously the minimum was two years).
If you have any other questions, please contact us on 0800 988 7701, or use the contact form on the left, and we'll get back to you as soon as possible.