In forceAmended2020 Revised Edition

Contents

Insolvency, Restructuring and Dissolution Act 2018 · 2020 Revised Edition · Part 18 · Annulment and Discharge

397. Effect of discharge

In plain English

Discharge releases a bankrupt from all debts provable in the bankruptcy, with some exceptions. The bankrupt stays liable for government debts, fines, and debts from fraud they took part in. Debts for personal injury damages or from orders in family proceedings remain unless the court directs otherwise. Discharge does not release partners or sureties of the bankrupt.

Summary · Drafted with AI, checked against the official text on 30 Sep 2026.

Amended

Last amended by an amending law of 2019.

(1)

Subject to this section and any condition imposed by the Court under section 394 or 396, where a bankrupt is discharged, the discharge releases the bankrupt from all the debts provable in the bankruptcy but has no effect —

(a)

on the functions (so far as they remain to be carried out) of the Official Assignee; or

(b)

on the operation, for the purposes of the carrying out of those functions, of the provisions of Parts 3 and 13 to 22.

(2)

Discharge does not release the bankrupt from —

(a)

any debt due to the Government;

(b)

any debt with which the bankrupt may be chargeable at the suit of —

(i)

the Government or any other person for any offence under any written law relating to any branch of the public revenue; or

(ii)

the Sheriff or other public officer on a bail bond entered into for the appearance of any person prosecuted for any such offence; and

(c)

a debt in respect of any premium (including interest and penalties for late payment) and other sums due under the MediShield Life Scheme Act 2015 or the CareShield Life and Long‑Term Care Act 2019.

(3)

A bankrupt may be discharged from any debt mentioned in subsection (2) only by a certificate in writing of the Minister.

(4)

Discharge does not affect the right of any secured creditor of the bankrupt to enforce the secured creditor’s security for the payment of a debt from which the bankrupt is released.

(5)

Discharge does not release the bankrupt from —

(a)

any provable debt which the bankrupt incurred in respect of, or forbearance in respect of which was secured by means of, any fraud or fraudulent breach of trust to which the bankrupt was party; or

(b)

any liability in respect of a fine imposed for an offence.

(6)

Discharge does not, except to such extent and on such conditions as the Court may direct, release the bankrupt from any debt which has been proved and which —

(a)

consists in a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, being damages in respect of personal injuries to any person;

(b)

arises under any order made in proceedings under the Women’s Charter 1961 relating to family matters; or

(c)

arises under an order involving pecuniary liability made under any written law relating to the confiscation of the proceeds of crime.

(7)

Discharge does not release any person other than the bankrupt from any liability (whether as partner or co‑trustee of the bankrupt or otherwise) from which the bankrupt is released by the discharge, or from any liability as surety for the bankrupt or as a person in the nature of such a surety.

(8)

For the purpose of subsection (6), “personal injuries” includes death and any disease or other impairment of a person’s physical or mental condition.

Terms defined in this Act

bankrupt
Defined · s 2
“bankrupt” means —(a)an individual debtor who has been adjudged bankrupt by a bankruptcy order; or(b)where a bankruptcy order has been made against a firm, each of the partners in the firm;
Open s 2
Court
Defined · s 2
“Court” means the General Division of the High Court;
Open s 2
debt
Defined · s 288
“debt” means any debt, or any liability to pay money, that is unsecured, present, certain, and of an amount that is fixed or liquidated;
Open s 288
family
Defined · s 273
“family”, in relation to a bankrupt, means the persons (if any) who are living with and dependent on the bankrupt;
Open s 273
liability
Defined · s 2
“liability” means a liability to pay money or money’s worth, regardless whether such liability is present or future, certain or contingent or of an amount that is fixed or liquidated or that is capable of being ascertained by fixed rules or as a matter of opinion, and includes any such liability arising —(a)under any written law;(b)under contract, tort or bailment;(c)as a result of a breach of trust by the person liable; or(d)out of an obligation to make restitution;
Open s 2
Minister
Defined · s 2
“Minister” means —(a)except as provided in paragraph (b), the Minister charged with the responsibility for administration of affairs of insolvent persons and insolvent companies; and(b)for the purposes of sections 124(1)(g) and (2)(c), 125(5), 127(3) and 198, the Minister charged with the responsibility for registration of companies;
Open s 2
officer
Defined · s 61
“officer”, in relation to a corporation, includes —(a)a director or secretary of the corporation, or a person employed in an executive capacity by the corporation;(b)a receiver and manager of any part of the undertaking of the corporation appointed under a power contained in any instrument; and(c)a liquidator of a company appointed in a voluntary winding up,but does not include —(d)a receiver who is not also a manager;(e)a receiver and manager appointed by the Court;(f)a liquidator appointed by the Court or by the creditors; or(g)a judicial manager appointed under Part 7;
Open s 61
Official Assignee
Defined · s 2
“Official Assignee” means the Official Assignee appointed under section 16(1) and includes a Deputy Official Assignee, a Senior Assistant Official Assignee and an Assistant Official Assignee;
Open s 2
provable debt
Defined · s 273
“debt provable in bankruptcy” or “provable debt” means any debt or liability that is made provable in bankruptcy under this Act;
Open s 273
secured creditor
Defined · s 273
“secured creditor”, in relation to a debtor, means a person holding a mortgage, pledge, charge, lien or other security on or against the property of the debtor or any part of such property as security for a debt due to the person from the debtor;
Open s 273
security
Defined · s 61
“security” means any mortgage, charge, pledge, lien or other security recognised by law;
Open s 61
Sheriff
Defined · s 273
“Sheriff” includes a bailiff and any officer charged with the execution of any writ or other process of the Court;
Open s 273
trustee
Defined · s 2
“trustee”, in relation to a bankruptcy and a bankrupt, means the trustee of the bankrupt’s estate and includes the Official Assignee when acting as trustee of the bankrupt’s estate;
Open s 2