Author Topic: Term of bankruptcy  (Read 1075 times)

micawber

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Term of bankruptcy
« on: Dec 21, 2009, 01:00:26 AM »
I have read my details on The Insolvency Service website and was a bit bothered that so much is there that I am at risk of identity theft.


That aside, it say automatic discharge on 4 Dec 2010. Does that mean I stop paying the OR on that date or do I pay until all creditors are satisfied?

bankruptcy.co.uk

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Re: Term of bankruptcy
« Reply #1 on: Mar 08, 2010, 06:19:29 PM »
Hi Micawber,
 
Your name is placed on the insolvency register if that is what you mean. I personally would love to have this removed as I believe it is just placed as a punitive measure and individuals are punished enough from their debt problems by the impact it has on their lives. However, let us move past this and answer your real question.
 
Discharge is a maximum of 12 months from entering bankruptcy (unless there are elements of fraud etc) If your paperwork states that you will be discharged on 4th Dec 2010, then this is exactly what it states. However, if you are paying into an IPA, you will still have to make these payments for a 3 year period (starting from the date you entered into bankruptcy). If your income increases, this will not affect your IPA however thus the benefit of discharge. Also, if, for example, you won the lottery, the only money taken from you would be the outstanding IPA left to pay, rather than the full sum if you were not discharged.
 
I hope this helps!

Best of luck!
Raphael Gilbert
Head of Insolvency Divison www.ban