"One does not generally see references in the legal news (and certainly not the mainstream press) to criminal prosecutions for Insolvency Act offences. However, Becker’s conviction highlights that whilst, for some, bankruptcy may act as a release from their debts and a way of starting their financial life again, it can also have a long-lasting effect, with duties that continue long after their discharge. Similarly, failing to comply with those duties can have serious consequences, including – as Becker has found – a loss of liberty."
Writing in the Solicitors Journal, Russell-Cooke's restructuring and insolvency team explore the process of bankruptcy through the lens of the recently decided Boris Becker case. We focuses on the duties to which a bankrupt may be subject under the Insolvency Act, 1986.
A bankrupt is automatically discharged from bankruptcy after a year, unless that period is suspended under s.279 Insolvency Act, which could happen if the court is satisfied that the bankrupt has failed, or is failing, to comply with their obligations under the Insolvency Act.
Discharge releases individuals from most of the restrictions and consequences that are imposed on them following the making of a bankruptcy order.
The full article is available to read online and by subscription at the Solicitors Journal.
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