The length of your bankruptcy will be determined by the Official Receiver (OR). However, you will normally be bankrupt for twelve months. During this time, you must live within the restrictions of bankruptcy. For example, you must not act as a director of a limited company or apply for credit without making it known that you are bankrupt.

After twelve months has passed, you will be discharged from your bankruptcy and the restrictions will no longer apply to you.

If you are declaring bankruptcy for a second time or the Official Receiver believes you have acted improperly towards your creditors, they may apply to the court to extend the term of your bankruptcy for longer than 12 months. However this is unusual.
Under certain circumstances, the Official Receiver may even decide to discharge you earlier than twelve months. However this is becoming more and more unusual. You should therefore always plan assume your bankruptcy will last for a full year.

How will I be affected after I am discharged?

There are certain elements to bankruptcy which will last longer than the normal twelve months.

If you have been asked to make a monthly payment towards your debts (called an income payment order), this will generally last for three years. As such, the payments you make will continue for a further two years after you have been discharged.

The record of you having been declared bankrupt will remain on your credit file for six years from the date of your bankruptcy. This means that you will continue to find it difficult to get credit even after you are discharged.

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