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

'Mounting anxiety' from Autumn Budget leading to more financial advice enquiries

'Mounting anxiety' from Autumn Budget leading to more financial advice enquiries

Enquiries for financial advice up by nearly a quarter following Budget

Sahar Nazir
clock 11 December 2025 • 1 min read
Pension sharing on divorce: Why professionals need to step up on PSOs 25 years on

Pension sharing on divorce: Why professionals need to step up on PSOs 25 years on

'Pensions still remain the most routinely overlooked asset in divorce'

Joanna Newton
clock 10 December 2025 • 4 min read
FCA plans to ensure liquidity mismatches do not 'threaten financial stability'

FCA plans to ensure liquidity mismatches do not 'threaten financial stability'

Although good practice exists

Alex Sebastian
clock 09 December 2025 • 2 min read