How long does Bankruptcy last and what effect will it have on my credit rating?
Fast becoming one of the most popular debt solutions available to debtors, bankruptcy is a type of insolvency measure that aims to absolve debtors from most, but not all, of their credit agreements.
Usually lasting 12 months, the insolvency measure requires debtors to declare certain types of asset (home, vehicles, etc.) that can be sold to pay off debts (or a proportion thereof). Assuming the bankrupt follows all conditions and restrictions imposed on him, the insolvency measure should not last longer than 12 months (earlier in some cases). The credit rating of the bankrupt will be negatively affected for up to six years.
If the bankrupt is deemed to have acted dishonestly or irresponsibly by the Official Receiver, a Bankruptcy Restriction Order (BRO), which extends the conditions and restrictions of an insolvency order for up to fifteen years, may be imposed.