Im In Bankruptcy, How Do I Get Out ?


A debtor may be discharged from bankruptcy in a number of ways, set out below, all of which, however, require that enough funds must have been realised to cover the costs, fees, expenses and preferential debts arising in the bankruptcy.

Discharge after payment of debts in full
Where the debtor's creditors have been paid in full, together with such interest as the court allows. Where the bankrupt's property is sufficient to permit payment of interest at the rate payable on judgements, that rate will apply .

Discharge with the creditors' consent
Where all of the debtor's unsecured creditors consent.

Discharge after making composition with the creditors
Where the debtor has provided the Official Assignee with the funds needed to meet a settlement (called a "composition after bankruptcy" ) with his unsecured creditors - for a settlement to be effective, it must receive the support of at least sixty per cent in number and value of the unsecured creditors voting on it.

Discharge after paying fifty pence in the pound
Where the debtor's property has been fully realised and his/her creditors have received fifty pence in the pound on their debts.

Discharge after twelve years
Where the bankruptcy has lasted for twelve years, the debtor's property has been fully realised, and the court is satisfied that the debtor has disclosed any property acquired since bankruptcy and that it would be reasonable and proper to discharge the debtor from bankruptcy.

On being discharged from bankruptcy, any funds or property remaining are returned to the former bankrupt.

For more information please call us free on 01657 5602 or fill out our quick contact form and we will get back to you.