In the UK, several people take credits for their personal purposes. But unfortunately, most of them are still struggling to clear them off. Somehow, if you become bankrupt, but the court will not order you to stop the payment. This kind of situation is basically known as the Undischarged Bankrupt.
Making it simpler to understand, the term actually means that the procedure of bankruptcy is still active. Moreover, all the restrictions regarding the process are also active. Dealing with this type of process in the United Kingdom is not that easy and simple. You need to seek help from a trustee and get along, together. There might be some problems that can arise regarding the assets.
What does Undischarged Bankrupt mean?
In simple words, the term Undischarged Bankrupt actually means that you have already lost control over the assets. The valuable items are under the possession of a certain group of people. And, they will not release them until and unless you pay back the borrowed amount. So, you are in the Undischarged Bankrupt situation.
Undischarged Bankrupt: The Time Span
If you look deep into this matter, then bankruptcy in the United Kingdom takes just a year to discharge, completely. This happens in basic or normal circumstances. In addition to that, paying an amount of money at the end of each month will eventually lead to discharge. After that, all the restrictions that lie upon you will also be eliminated from the creditor organization.
Are you an Undischarged Bankrupt?
When you owe money to a certain creditor and fall in a difficult situation, he/she might appeal the matter to the court. As per the court’s order, you are not allowed to do certain activities or sell the items that have a good monetary value.
When these types of incidents occur, then be sure that you are under Undischarged Bankrupt. Therefore, pay back the money as soon as possible to regain control over the things that belong to you.
Can it be Automatically Eliminated?
Yes, it will. After you have paid the borrowed amount, the valuable things that are in the custody will automatically be released. The time span will be one year. If not, then dig deep into the matter and look for any type of problems. If you detect them, resolve them at any cost.
Are there Restrictions on Travelling?
Technically speaking, NO. There are basically no restrictions on taking domestic and international trips. But, you must be a citizen of England, Scotland and Wales. As your asset is the creditor’s custody, there are no restrictions.
On the other hand, you also have to keep up the pace of paying off the money to the creditors. Just because you are on a trip and willing to miss a payment of payback later, no it will not work at all.
What is the Role of Income Payment Agreement (IPA)?
It is obvious that after the completion of payments, you will be able to return to your normal life, once again. In case, you are making the payment with the help of IPA, then the Undischarged Bankrupt situation will be discharged. But, you have to pay continuously up to three years, which is quite a long time indeed.
Undischarged Bankrupt: Its Typical Timeline
The timeline of Undischarged Bankruptcy has a large number of course of actions. Some of them are given here.
- Looking upon the file assessment of bankruptcy, the creditors will pursue a halt in the collection.
- As per the statutory requirements, one has to provide all the details of income, assets and expenditure.
- The requirements are mentioned in the Bankruptcy and Insolvency Act of the United Kingdom.
- Bankruptcy for the first time will never require any type of payments based on the surplus income.
- In case, the surplus income is needed, the discharge time will increase its range up to 21 months.
One main thing, all the details regarding the bankruptcy will be issued by the court itself. So, there will be no direct interference of the creditors. If your bankruptcy is personal, then completing all the formal procedures and duties will be helpful, in the near future.