New bankruptcy orders can be extended beyond a year

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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...

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