The definition of the term “Discharged from Bankruptcy” according to the financial dictionary is
“The termination of bankruptcy proceedings, resulting in cancellation of the debtor’s obligations”.
As suggested by this definition, an individual is no longer considered bankrupt when they are discharged.
A certificate of discharge will be issued by the Official Receiver, in line with the terms of the Bankruptcy Order.
In normal circumstances, an individual will be discharged from Bankruptcy automatically after 12 months.
However, it is possible to be discharged from bankruptcy sooner, and at present it is not unusual to hear of bankruptcies being discharged after as little as 7 months.
Contrary to a reduction of the Bankruptcy term, there is the possiblility that the court can increase the term of a bankruptcy.
The court has the power to impose a Bankruptcy Restriction Order (BRO), which lengthens the bankruptcy term for any interim term upto a maximum of 15 year.
In cases of excessive gambling and reckless spending the court has imposed Bankruptcy Restriction Orders (BRO) for terms of 4 to 5 years, though each case is assessed by the Official Receiver on merrit.
The maximum time limit of a Bankruptcy Restriction Order (BRO) would only be meted out for the most severe cases of willful irresponsibility, criminal activity or fraud.
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