What happens if you don’t get discharged?

MD201989

Has there ever been a case where someone goes bankrupt but for some reason or other doesn’t get discharged?

what would happen?

what if someone was happy to hit live a simple life and never get credit again?

MD201989

Would it still be wiped off the credit files after six years if it’s not been discharged?

flipflopflo

MD201989 said:

Has there ever been a case where someone goes bankrupt but for some reason or other doesn’t get discharged?

what would happen?

what if someone was happy to hit live a simple life and never get credit again?

Yes there has been quite a few cases over the years. You stay on the IS register until you finally co-operate with the OR and when you do it will be removed from the register and your credit files. 

Why don’t you think you would get discharged?

has the OR been in touch with you yet? Does s/he want to impose an IPA?

Fighter1986

You'll be discharged unless you refuse to comply with the OR's reasonable requests, which will likely leave you subject to a BRO (Bankruptcy Restrictions Order) as well. Eventual discharge is inevitable, it just takes longer when the debtor refuses to comply leaving the OR to do more of the legwork himself. 

This isn't an outcome a bankrupt should ever consider as a possibility however, as the truth will out in the end, even if the OR has to obtain all the information he's after directly from your banks / letting agents / employers / etc himself.

KeepOnKnitting

You can see these if you look at the insolvency register. One I have just found dates back to 1995, with the footnote : Order suspending bankrupt’s discharge under Section 279(3) of the Insolvency Act 1986 until the fulfillment of conditions as specified in the Order made by the Court and effective from 07 July 1995

You will just always be an undischarged bankrupt, unable to be a company director, borrow more than £500 etc etc. Your name will remain on the insolvency register for people to find if they ever google you. It's a choice of course, but not one I would ever personally want.

Minkym00

There are plenty of bankrupts where their discharge has been suspended as they don’t comply with the OR. Some never even know about it as the order is made in the wrong name or address. Yes, it will remain on their credit file and they will remain bankrupt until they engage with the OR, and many do years and years later. But it’s not just getting credit, if you came into any money (compensation, insurance claim, inheritance etc), then it would be claimed by the OR. There are plenty of people who were upset about not being able to keep their PPI claims for example.

Plenty of people do it but these are mostly people off the grid in any case.

(I say “you” but appreciate this is a rhetorical question).

Fighter1986

I don't think the payout from an insurance claim can be considered income, it's a payment in lieu of placing the insured "back in the position they were before loss occurred". 

The same way an insurance claim payout couldn't be admissed as income as part of a benefit claim, or when calculating income tax. 

But yes, good points well made. Lots of people living off grid or so absolutely removed from a standard way of living that they aren't bothered about what any official register has to say about them.

Minkym00

Fighter1986 said:

I don't think the payout from an insurance claim can be considered income, it's a payment in lieu of placing the insured "back in the position they were before loss occurred". 

The same way an insurance claim payout couldn't be admissed as income as part of a benefit claim, or when calculating income tax. 

But yes, good points well made. Lots of people living off grid or so absolutely removed from a standard way of living that they aren't bothered about what any official register has to say about them.

An insurance claim is not income, it’s potentially an after-acquired asset. If a bankrupt wrote off a car then the subsequent insurance payout would be claimable by the OR.

flipflopflo

And another post the OP has posted and then not responded to the posters who have taken time to answer and support them.

Morfx

Sorry to jump on someone's thread, but I'd kinda relevant.. are you notified when discharged on the day or just wait for a letter?

flipflopflo

No notification and no letter though there is an email address you can use to get proof of discharge but it escapes me atm, I'm sure someone will know. If you watch your entry at midnight on the night before/on your discharge you will see it change and can print off copies of the notification. Your discharge will show on the IS site for 3 months after discharge and then disappear but will be on the London Gazette all time. It willl drop off your credit file 6 years from the date of your bankruptcy.