How and When Does Bankruptcy End

Bankruptcy ends when one of the following occur:

• Complete payment of all debts
• Annulment through a Section 73 proposal
• Discharge from bankruptcy after the statutory period of 3 years has expired, except in cases where an objection has been made to the discharge of the bankruptcy.

What happens when you have discharged your bankruptcy?

• Debts incurred after bankruptcy

You will still be responsible for any debts you incurred after you became bankrupt, i.e. from the date you file a Statement of Affairs or, if you were sequestrated,  on the same day as the application was made by the court.

• Credit rating

You will be listed as a bankrupt on your credit file. This record is open to public search and your name will appear on it for 7 years from the commencement of your bankruptcy, even if your bankruptcy has been discharged since then.

• National Personal Insolvency Index

The ITSA records your bankruptcy on the National Personal Insolvency Index database. Your name will appear on this database forever.

• Other difficulties

Lenders may limit your ability to borrow money or buy things on credit; you may find it hard to rent, or get electricity, water or the telephone connected without paying a bond; and some banks will not let you operate a bank account or will restrict how you use an account. You may find it hard to get or renew insurance. Job opportunities may also be affected by your bankruptcy.
We strongly suggest that you seek financial advice and consider all of the options available to you before going bankrupt. It is important to be aware of all of the consequences of bankruptcy.