What does discharge actually mean?

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london1973
london1973 Posts: 448 Forumite
First Anniversary Name Dropper First Post Combo Breaker
in Bankruptcy & living with it
Hi,

I was reading Stillinamess's post this morning and it left me rather confused as to what discharge specifically means, so without wanting to hijack that thread I'll ask separately

I thought it was the point that the OR was satisfied the BR could be returned to decent society, as it were, and all loose ends were tied up, and you were, therefore, discharged from all of you qualifying debts, I.e debt-free from that point - I.e the period of the bankruptcy was to sort all of your debts, creditors and assets, and when all done, you are free to go (discharged) - it appears from the previous thread though that although discharged the saga continues with HMRC still an active creditor

Can someone explain, thanks in advance

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  • dojoman
    dojoman Posts: 12,027 Forumite
    edited 19 October 2016 at 7:51AM
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    It means exactly what it says on the tin. The case you refer to looks like a complicated one. If it is a personal BR as long as you cooperate with the OR then you will receive automatic discharge after 12 months. All unsecured debts prior to your BR will be now settled, secured debts are not included. If you have a property and there is enough equity in it, the OR will look to sell the house, they have 3 years from the date of your BR to do this, it is not a case of the HRMC being an active creditor. Mine was very straight forward and I was discharged after 12 months.

    Hope this helps :)
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • london1973
    london1973 Posts: 448 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
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    ok thanks, so you can be discharged, and technically owe nothing, but the creditors can still recoup from the liquidation of assets-so in this sense the debts are still 'live'
    possible i'm overthinking this!
  • alltaken
    alltaken Posts: 452 Forumite
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    dojoman wrote: »
    All unsecured debts prior to your BR will be now settled, unsecured debts are not included.

    Did you mean 'Secured debts are not included'? It is how I read this.
  • dojoman
    dojoman Posts: 12,027 Forumite
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    alltaken wrote: »
    Did you mean 'Secured debts are not included'? It is how I read this.

    Oops, yes I did, thanks for that, I have edited it :eek:
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
  • dojoman
    dojoman Posts: 12,027 Forumite
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    london1973 wrote: »
    ok thanks, so you can be discharged, and technically owe nothing, but the creditors can still recoup from the liquidation of assets-so in this sense the debts are still 'live'
    possible i'm overthinking this!

    No the debts are not live as you put it, you are overthinking it. If you have a equity in your home then it is at risk if you go BR, not all the money would go to your creditors, the OR would take some for its costs. Any unsecured debt as stated, is dead once you are declared BR. If you are going BR, talk to one of the debt charities, it maybe be easier to understand talking to someone in person.
    :pB&SC No. 298
    Life`s Tragedy is that we get OLD too soon
    and WISE too late!
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