IRRV Alert - week ending 18th October 2013

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Insolvency Service Law - Repeal of early discharge provision

 

 

 

 

 

Important information from the Insolvency Service:

 

 

 

Early discharge from bankruptcy allows a bankrupt to be discharged in less than one year if the Official Receiver files a notice with the court stating that an investigation of the conduct and affairs of the bankrupt is unnecessary or concluded (section 279(2) Insolvency Act 1986).

The Enterprise and Regulatory Reform Act 2013 (section 73 and Part 3 of Schedule 21) repeals the early discharge provision. For any bankruptcy orders made on or after 1 October 2013, a bankrupt will be automatically discharged after 12 months providing their discharge has not been suspended. Early discharge will no longer apply to these cases.

The repeal is not retrospective. All bankruptcy orders made up to and on 30 September 2013 will remain eligible for consideration for early discharge after 1 October 2013. Official Receivers will continue with their present practice when considering early discharge in these cases.

The following Insolvency Service publications are affected by the repeal of early discharge and have been updated :-

  • A Guide to Bankruptcy
  • When will my bankruptcy end? Information on discharge from bankruptcy
  • What happens when you are interviewed by the Official Receiver
  • A Guide to creditors

The Insolvency Service website has also been updated - it provides guidance on discharge from bankruptcy (Insolvency Service - home - personal tab - discharge from bankruptcy). 


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