Bankrupt For Just One Year

	Do you live in Scotland? As Scotland has its own legal system, distinct from that of England and Wales, laws relating to bankruptcy are different too. In Scotland, personal bankruptcy is known as sequestration.

	Will my bankruptcy really end after just one yearbecause of changes in the law? NOTE: If you have serious problems with debt and are considering bankruptcy, it is important that you seek professional advice before doing so. Encouraged by what they read in the media, increasing numbers of people are seeing bankruptcy as an "easy option". After just one year, you are discharged and the slate containing all of your debts is wiped clean. But is this really the case? As of the 1st of April, 2004, the period of bankruptcy was indeed reduced from three years to one thanks to the Enterprise Act. And that does mean that 12 months after you were first made bankrupt, your bankruptcy will be discharged and on that date you will be freed from most debts that you incurred before the bankruptcy order was made. There are reasons why you might not be discharged from bankruptcy after a year however. The most common reason is if you do not co-operate with the official receiver or your appointed trustee during your bankruptcy - by refusing to provide information requested for example. If it is considered by the court that you are in a position of bankruptcy through reckless or irresponsible behaviour, a Bankruptcy Restriction Order (BRO) can be applied for. This can impose restrictions on you for between two and 15 years after you have been discharged.

Will my bankruptcy really end after just one yearbecause of changes in the law?

NOTE: If you have serious problems with debt and are considering bankruptcy, it is important that you seek professional advice before doing so.

Encouraged by what they read in the media, increasing numbers of people are seeing bankruptcy as an "easy option". After just one year, you are discharged and the slate containing all of your debts is wiped clean.

But is this really the case?

As of the 1st of April, 2004, the period of bankruptcy was indeed reduced from three years to one thanks to the Enterprise Act.

And that does mean that 12 months after you were first made bankrupt, your bankruptcy will be discharged and on that date you will be freed from most debts that you incurred before the bankruptcy order was made.

There are reasons why you might not be discharged from bankruptcy after a year however.

The most common reason is if you do not co-operate with the official receiver or your appointed trustee during your bankruptcy - by refusing to provide information requested for example.

If it is considered by the court that you are in a position of bankruptcy through reckless or irresponsible behaviour, a Bankruptcy Restriction Order (BRO) can be applied for. This can impose restrictions on you for between two and 15 years after you have been discharged.

© Bankrupt.co.uk 2007, 2008. All rights reserved. Please note the contents of this website are for information purposes only and do not constitute financial advice. Please seek independent professional advice before taking action that may affect your financial well-being.