New bankruptcy orders can be extended beyond a year

clock •

The bankruptcy courts do have the power to impose much lengthier periods of bankruptcy than is generally known under the new laws, if it can be proven the individual deliberately incurred debts which they knew they could not afford to pay.

Details of a case which has just come to light in Birkenhead reveals the Bankrupcy Petition Courts can extend a bankruptcy order for up to 15 years if the person petitioned borrows money knowing there are other creditors to pay yet has no reasonable expectation of every repaying. Under the terms of the Enterprise Act 2002, which came into force in April this year, bankrupts are now automatically discharged after one year instead of two or three years, but that bankruptcy restriction period can be extended to up to 15 years in the most serious of cases. Former owner of a pub in Birkinh...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Sentiment on the rise but 'calm may not last' as Budget looms

Sentiment on the rise but 'calm may not last' as Budget looms

According to Dynamic Planner’s Financial Happiness Index

Sophia Panayi
clock 06 October 2026 • 2 min read
SJP adviser academy welcomes 200 graduates

SJP adviser academy welcomes 200 graduates

Graduation ceremony held on Friday

Sophia Panayi
clock 05 October 2026 • 2 min read
Feel Good Friday: EQ Investors team completes 17.5-mile charity walk

Feel Good Friday: EQ Investors team completes 17.5-mile charity walk

For Carney’s Community

Professional Adviser
clock 02 October 2026 • 1 min read