Once a debtor has declared bankruptcy, their credit rating and other financial needs will be affected. However, debtors who have been found to be bankrupt will in time be discharged.
Generally, bankruptcy discharge happens around one year after the date of the bankruptcy order. In some cases, the discharge period could be longer than one year.
Bankruptcy discharge is the process that frees you from the constraints and restrictions of having been declared bankrupt. Discharge frees you from most of the debts you owed at the date the bankruptcy order was made.
What bankruptcy discharge means for debtors
Although a debtor will be discharged from their bankruptcy, the responsibility that comes with ending bankruptcy continues until the debtor has been discharged from their duties.
It isonly when all has been accounted for with a debtor's estate through trustees and receivers in bankruptcy that they can seek discharge.
A bankruptcy discharge means you will be freed of the relevant debts incurred before being declared bankrupt.
Debt advice from Legal Advice Helpline
Legal Advice Helpline has more information on debt services including how to declare bankruptcy and the pros and cons of choosing to declare bankruptcy.
For more information on debt services, Legal Advice Helpline has debt solutions and statistics as well as information on bankruptcy alternatives. Please call 0800 612 3042 today.