ICAEW BL · Chapter 11 · Question 10 of 10
Under the Insolvency Act 1986, when is an individual who has been made bankrupt usually discharged from bankruptcy, assuming no order suspending discharge is made?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Automatically, one year after the bankruptcy order
Explanation
Under s279 Insolvency Act 1986, a bankrupt is automatically discharged one year after the bankruptcy order. The court can suspend discharge if the bankrupt fails to cooperate. Discharge releases the bankrupt from most bankruptcy debts, but the trustee keeps control of the property already vested in the estate. A bankruptcy restrictions order may extend restrictions in cases of misconduct.
More Corporate and personal insolvency MCQs
- Q2Wren Ltd owes Marlow Ltd an undisputed debt well above the statutory minimum. Marlow serves a statutory demand at Wren's registered…
- Q3Kestrel Ltd went into compulsory liquidation in 2025. Its fixed charge holder has been paid in full from its security, and the costs and…
- Q4Kittiwake Ltd went into insolvent liquidation. Its directors kept trading for a year after they ought to have concluded that there was no…
- Q5Which statement about fraudulent trading under the Insolvency Act 1986 and the Companies Act 2006 is correct?
- Q6Four months before Merlin Ltd went into insolvent liquidation, and while it was already unable to pay its debts, it paid in full the…