Suspension of discharge from bankruptcy under section 279(3) of the Insolvency Act 1986
Produced in partnership with Aileen McErlean of Hardwicke Chambers
Suspension of discharge from bankruptcy under section 279(3) of the Insolvency Act 1986

The following Restructuring & Insolvency practice note produced in partnership with Aileen McErlean of Hardwicke Chambers provides comprehensive and up to date legal information covering:

  • Suspension of discharge from bankruptcy under section 279(3) of the Insolvency Act 1986
  • Coronavirus (COVID-19)
  • Recap of discharge from bankruptcy
  • Suspending a bankrupt’s discharge from bankruptcy
  • Who can apply to suspend a bankrupt’s discharge?
  • What are the benefits to the estate and the trustee of suspending a bankrupt’s discharge?
  • Steps to take prior to issuing an application for suspension of discharge
  • Applying for suspension of discharge
  • The relief the court can grant
  • Factors in favour of suspension of discharge
  • More...

Suspension of discharge from bankruptcy under section 279(3) of the Insolvency Act 1986

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic, including the Temporary Insolvency Practice Direction 2020. For further information, see Practice Notes: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings and The Temporary Insolvency Practice Direction Supporting the Insolvency Practice Direction (April 2021). For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

Recap of discharge from bankruptcy

A person’s bankruptcy commences on the day on which the bankruptcy order is made and continues until that person is discharged from bankruptcy (section 278 of the Insolvency Act 1986 (IA 1986)).

A debtor is automatically discharged one year from the day on which they were made bankrupt (IA 1986, s 279(1)), unless a criminal bankruptcy order was made (IA 1986, s 279(6)).

Until discharged, a bankrupt cannot, among other restrictions:

  1. act as a director of a company (without the leave of the court)

  2. obtain credit above £500 without disclosing that they are an undischarged bankrupt

  3. carry on business in a different name from that which they were made bankrupt (without informing all people they do business with that they are an undischarged bankrupt)

  4. be elected

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