How Long Do Bankruptcies Last in the UK?

If you are unable to pay your debts as they fall due you are insolvent. Your creditors might petition for your bankruptcy or you might elect to apply to make yourself bankrupt to draw a line under your current situation so that you can try and move on. 

What Is Bankruptcy?

Bankruptcy is like a financial death where a Trustee in Bankruptcy (TiB) acts as a sort of executor, but instead of drawing in and realising his estate for the beneficiaries under his will, he draws in and realises the bankrupt’s estate for the benefit of his creditors. 

The bankrupt will lose control over his assets and the TiB will manage and realise the bankruptcy estate for the benefit of his creditors. Where the bankrupt’s income exceeds his living expenses the TiB can also obtian orders for that excess to be paid into the bankrupt estate. 

How Long Will Bankruptcy Last?

The bankruptcy commences on the day that the bankruptcy order is made and the bankrupt will be automatically discharged from bankruptcy one year later assuming that he has complied with his obligations and his bankruptcy has not been extended. Where the bankrupts conduct warrants it the TiB can obtain bankruptcy restrictions orders lasting between 2 to 15 years the effects of which effectively maintain the position as if the bankrupt had not been discharged. 

Final Thoughts

If you are owed money or are being pursued by creditors, contact Helix Law for advice. Our commercial litigation team routinely force bankruptcy and recovery against individuals. We are also especially adept and experienced at preventing this outcome and at looking at alternative claims to try to improve the position of creditors. If you are in this position or ecosystem/sphere dont hesitate to contact a member of our team and we will be happy to assist you.