Part 10Insolvency

Individuals

256Duration of bankruptcy

1

The following shall be substituted for section 279 of the Insolvency Act 1986 (c. 45) (duration of bankruptcy)—

279Duration

1

A bankrupt is discharged from bankruptcy at the end of the period of one year beginning with the date on which the bankruptcy commences.

2

If before the end of that period the official receiver files with the court a notice stating that investigation of the conduct and affairs of the bankrupt under section 289 is unnecessary or concluded, the bankrupt is discharged when the notice is filed.

3

On the application of the official receiver or the trustee of a bankrupt’s estate, the court may order that the period specified in subsection (1) shall cease to run until—

a

the end of a specified period, or

b

the fulfilment of a specified condition.

4

The court may make an order under subsection (3) only if satisfied that the bankrupt has failed or is failing to comply with an obligation under this Part.

5

In subsection (3)(b) “condition” includes a condition requiring that the court be satisfied of something.

6

In the case of an individual who is adjudged bankrupt on a petition under section 264(1)(d)—

a

subsections (1) to (5) shall not apply, and

b

the bankrupt is discharged from bankruptcy by an order of the court under section 280.

7

This section is without prejudice to any power of the court to annul a bankruptcy order.

2

Schedule 19 (which makes transitional provision in relation to this section)—

a

shall have effect, and

b

is without prejudice to the generality of section 276.