You will be free from your bankruptcy debts at the date of discharge. 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 are details of some of the questions you may have.
Can you get credit after discharge?
Yes, maybe. As a discharged bankrupt person, you will undoubtedly face challenges in 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
It would be best if you researched credit after bankruptcy for more information.
How do you get discharged?
It is automatic, 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 the official receiver or trustee can apply to the court to suspend your discharge. It will be suspended indefinitely until an obligation is met, or it will be suspended for a specified period.
Proof of that you have been discharged
If someone requires proof that you have been discharged from bankruptcy, you should establish whether they need a formal certificate. You may use a confirmation letter from the official receiver, which is unrestricted, as proof instead.
A formal certificate of discharge must be obtained from the court. You will need to pay a fee of £70 for 3 copies. Once you have the certificates, I suggest 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 significantly help you consider repairing your credit.
Search for information here.
Co-operating after your discharge from bankruptcy
Bankruptcy discharge does not release you from your obligation to cooperate with the trustee or the official receiver. The administration of your bankruptcy estate can continue after your bankruptcy discharge.