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

News editor's view: Let's give it up for the small advice firms

News editor's view: Let's give it up for the small advice firms

The news editor's Friday Night Takeaway from 22 May

Isabel Baxter
clock 22 May 2026 • 4 min read
Women more likely to seek professional financial advice – research

Women more likely to seek professional financial advice – research

Twenty percent of women likely to seek advice

Sophia Panayi
clock 22 May 2026 • 2 min read
The expectation gap: Why suitable advice can still fail the client

The expectation gap: Why suitable advice can still fail the client

'The industry is moving from suitability, to understanding and now to expectation management'

Elly Dowding and Lee Coates
clock 22 May 2026 • 4 min read