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Discussion and questions about what to expect when your bankruptcy is finished
Hi zooman and welcome to the forum

Congratulations that you are about to be discharged from your bankruptcy. Given that you are also paying an income payment order, this will not stop at the same time as your are discharged. Your payments must continue for a maximum of three years from the date they started. So probably for another 2 years after you are discharged. Also during this time you have to keep the official receiver informed if your circumstances change and you are able to pay more or need to reduce your payments.

For more information please have a look at the following article: https://www.beatmydebt.com/news-article ... nkrupt.htm
Hello zooman

As James has said, an income payment order made after you have been declared bankrupt will last for 3 years. As such, it will continue after you have been discharged. There is no getting around this if you are bankrupt and can aford to make a payment to your creditors. Ultimately you are still better off than being in a debt management plan or IVA as your payments in either of those solutions would last far longer.
I am confused. If the IPA continues to have legal implications for 2 years after the 'discharge' then is it really a discharge? Does this not mean the bankruptcy lasts for 3 years? What actually changes after the end of the bankruptcy?

(I know this thread started a long time ago but hoping someone will offer advice)

Thanks. (PS I live in Scotland)
Hi there Confused

This is something that many people have difficulty understanding so you are not alone :) To get your head around it you need to realise that a bankruptcy oder and an income payment order are two very seperate court orders. As such it is perfectly possible for the bankruptcy order to be discharged but the IPA to continue. The bankruptcy itself therefore only lasts for the 12 months.

The reason that the discharge from bankruptcy is important is that all of the restrictions on the bankrupt are then lifted at that time. EG the requirement to hand over windfalls to the OR and the ability to act as a company director.
Hello Confused

Hayden is quite right, it is quite normal for someone to be discharged from bankruptcy after 1 year but their income Payment Agreement to last for a further 2 years as both are seperate court orders. Even though the monthly payments continue, the individual is no longer a bankrupt and all other bankruptcy restrictions are lifted.

I note that you are living in Scotland. The term for bankruptcy in Scotland is Sequestration. However the rules as described in this post are the same.

Hope this helps. Please do not hesitate to ask if you need more advice.
Its easy to get confused about this Confused :) Hope the answers from hayden and James have made things clearer for you. If you have got more questions then as James has said please do let us know.
As the other posters have confirmed, the bankruptcy order lasts for 12 months and the Income payment agreement lasts for three years from the date issued. As such it is perfectly normal for payments to continue after discharge from bankruptcy.

Important also to note that once an income payment agreement is in place you must inform the official receiver of changes in your income (both up or down) so that the payments you make can be ammended accordingly. You must continue to do this even after you may have been discharged from your bankruptcy.