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Please, very simply...

If declaring BR, you are automatically (?) discharged after 1 year, have to pay funds for 3 years (?) and then, if a BRU/BRO is granted, you remain under the terms of the BR for that period of time, correct?

My question is, after 1 year, EVERYBODY?? is discharged?

Many thanks to such a useful group![:D]

Not if there is a Bankruptcy Restriction Undertaking or Order.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

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Sorry, I'm going to contradict you Melanie (I don't like doing this!!!) - I've just looked on www.insolvency.gov.uk and it confirms that you will automatically be discharged after 12 months unless the OR files a notice of early discharge or if you fail to co-operate with the OR (and I'm not suggesting that you would!) the discharge may be suspended.

If the OR has applied for a BRO/BRU the BR restrictions will continue for the length of the order, but this will not affect your discharge.

The full information can be found at http://www.insolvency.gov.uk/pdfs/guida ... tcyend.pdf

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

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yes, I got told this, on the day we were made bankrupt, we appeared on the Insolvency website and it stated Automatic Discharge in 12 months, I queried that as we have not had an OR interview and they have not investigated our circumstances, what if we got a BRO/U

I was told this would not affect discharge and that is always after 12 months

Hi
Well what is the point of a BRO if you are discharged automatically after a year ? I understood a BRO to be an extension of bankruptcy i;e you couldn,t become a director of a company etc etc.
So if you are discharged but in a BRO what can you do that a BRO stops you from doing ?
Regards

Andy Davie
IVA.co.uk Spokesperson

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I don't understand it either! Reading the info from the Insolvency Service you are bankrupt for a year and then automatically discharged from your debts. If the OR requests a BRU you are no longer 'a bankrupt', but are still subject to the same restrictions - totally pointless!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/

Skippy

I think that there is confusion in the interpretation of these paragraphs. Generally a BRU or BRO is accompanied by an application for a suspension on discharge, which I accept is a separate procedure, but they do go hand in glove. It is very unlikely that someone subject to a BRO or BRU would not have a suspension of discharge running alongside for the duration of the order or undertaking.

Suspension of discharges are usually given where the bankrupt fails to co-operate with the OR, there are known bankruptcy offences or reckless use of creditor money during the period leading up to the bankruptcy order.

BRUs and BROs were introduced with the Enterprise Act, to stop delinquent bankrupts from getting away with a one year discharge. Even if the OR was not to apply for a suspension of discharge - the bankruptcy's name and details of the offences is still held on the Register, with the same restrictions, so the issue of "discharge" is a bit of a nonsense in any case.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

I have just been on the insolvency site and found someone with a BRU and in the section where is usually says automatic discharge it states, 2010 BRU restriction ends, nothing about discharge as it usually does though.



lily

He could have had their discharge suspended I suppose - he must have been a very naughty boy in that case!

Yesterday is history, tomorrow is a mystery, today is the present - a gift to make the most of.

View my blog at http://skippy13.blogs.iva.co.uk/