The Insolvency (Northern Ireland) Order 1989

Commencement and duration of bankruptcy; discharge N.I.

Commencement and continuance N.I.

252.  The bankruptcy of an individual against whom a bankuptcy order has been made—

(a) commences with the day on which the order is made, and

(b) continues until the individual is discharged under the following provisions of this Chapter.

F1 Duration N.I.

253.—(1) Subject to paragraph (2), a bankrupt is discharged from bankruptcy—

(a) in the case of an individual who had been an undischarged bankrupt at any time within the 15 years immediately preceding the commencement of the bankruptcy, by an order of the High Court under Article 254; and

(b) in the case of an individual who is a solicitor and who is not an individual to whom sub‐paragraph (a) applies, by an order of the Court under Article 254; and

(c) in any other case, by the expiration of the relevant period under this Article.

(2) That period is as follows—

(a) where a certificate for the summary administration of the bankrupt's estate has been issued and is not revoked before the bankrupt's discharge, the period of 2 years from the commencement of the bankruptcy, and

(b) in any other case, the period of 3 years from the commencement of the bankruptcy.

(3) Where the High Court is satisfied on the application of the official receiver that an undischarged bankrupt in relation to whom paragraph (1)(c) applies has failed or is failing to comply with any of his obligations under this Part, the Court may order that the relevant period under this Article shall cease to run for such period, or until the fulfilment of such conditions (including a condition requiring the Court to be satisfied as to any matter), as may be specified in the order.

(4) This Article is without prejudice to any power of the High Court to annul a bankruptcy order.

F1 prosp. subst. by 2005 NI 10

F2 Discharge by order of the High Court N.I.

254.—F2 (1) An application for an order of the High Court discharging an individual from bankruptcy—

(a) in a case falling within Article 253(1)(a), may be made by the bankrupt at any time after the expiration of 5 years from the commencement of the bankruptcy; and

(b) in a case falling within Article 253(1)(b), may be made by the bankrupt at any time.

(2) On an application under this Article the High Court may—

(a) refuse to discharge the bankrupt from bankruptcy,

(b) make an order discharging him absolutely, or

(c) make an order discharging him subject to such conditions with respect to any income which may subsequently become due to him, or with respect to property devolving upon him, or acquired by him, after his discharge, as may be specified in the order.

(3) The High Court may provide for an order falling within paragraph (2)(b) or (c) to have immediate effect or to have its effect suspended for such period, or until the fulfilment of such conditions (including a condition requiring the Court to be satisfied as to any matter), as may be specified in the order.

F2 prosp. subst. by 2005 NI 10

Effect of discharge N.I.

255.—(1) Subject to the following provisions of this Article, where a bankrupt is discharged, the discharge releases him from all the bankruptcy debts, but has no effect—

(a) on the functions (so far as they remain to be carried out) of the trustee of his estate, or

(b) on the operation, for the purposes of the carrying out of those functions, of the provisions of this Part;

and, in particular, discharge does not affect the right of any creditor of the bankrupt to prove in the bankruptcy for any debt from which the bankrupt is released.

(2) Discharge does not affect the right of any secured creditor of the bankrupt to enforce his security for the payment of a debt from which the bankrupt is released.

(3) Discharge does not release the bankrupt from any bankruptcy debt which he incurred in respect of, or forebearance in respect of which was secured by means of, any fraud or fraudulent breach of trust to which he was a party.

(4) Discharge does not release the bankrupt from any liability in respect of a fine imposed for an offence or from any liability under a recognisance except, in the case of a penalty imposed for an offence under a statutory provision relating to the public revenue or of a recognisance, with the consent of the Treasury.

[F3 (4A) In paragraph (4) the reference to a fine includes a reference to a confiscation order under Part 2, 3 or 4 of the Proceeds of Crime Act 2002.]

(5) Discharge does not, except to such extent and on such conditions as the High Court may direct, release the bankrupt from any bankruptcy debt which—

(a) consists in a liability to pay damages for negligence, nuisance or breach of a statutory, contractual or other duty, or to pay damages by virtue of Part II of the Consumer Protection (Northern Ireland) Order 1987F4 , being in either case damages in respect of personal injuries to any person, or

(b) arises under any order made in family proceedings or in domestic proceedings[F5 or under a maintenance assessment made under the Child Support (Northern Ireland) Order 1991].

(6) Discharge does not release the bankrupt from such other bankruptcy debts, not being debts provable in his bankruptcy, as are prescribed.

(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) In this Article—

• “domestic proceedings” means domestic proceedings within the meaning of the Magistrates' Courts (Northern Ireland) Order 1981F6 ;

• [F7 “family proceedings” has the meaning given by Article 12(5) of the Family Law (Northern Ireland) Order 1993;]

• “fine” includes any pecuniary penalty, pecuniary forfeiture or pecuniary compensation payable on a conviction; and

• “personal injuries” includes death and any disease or other impairment of a person's physical or mental condition.

F3 2002 c. 29

F4 1987 NI 20

F5 1991 NI 23

F6 1981 NI 26

F7 1995 NI 2

F8 prosp. insertion by 2005 NI 10

Power of High Court to annul bankruptcy order N.I.

256.—(1) The High Court may annul a bankruptcy order if it at any time appears to the Court—

(a) that, on any grounds existing at the time the order was made, the order ought not to have been made, or

(b) that, to the extent required by the rules, the bankruptcy debts and the expenses of the bankruptcy have all, since the making of the order, been either paid or secured for to the satisfaction of the Court.

(2) The High Court may annul a bankruptcy order whether or not the bankrupt has been discharged from the bankruptcy.

F9 (3) The High Court shall annul a bankruptcy order made on a petition under Article 238(1)(d) if it at any time appears to the Courtthat the order appointing the Law Society of Northern Ireland as attorney for the solicitor has been rescinded in consequence of an appeal.

(4) Where the High Court annuls a bankruptcy order (whether under this Article or under Article 235F10 )—

(a) any sale or other disposition of property, payment made or other thing duly done, under any provision in Parts VIII to X, by or under the authority of the official receiver or a trustee of the bankrupt's estate or by the Court is valid, but

(b) if any of the bankrupt's estate is then vested, under any such provision, in such a trustee, it shall vest in such person as the Court may appoint or, in default of any such appointment, revert to the bankrupt on such terms (if any) as the Court may direct;

and the Court may include in its order such supplemental provisions as may be authorised by the rules.

F9 (5) In determining for the purposes of Article 253 whether a person was an undischarged bankrupt at any time, any time when he was a bankrupt by virtue of an order that was subsequently annulled is to be disregarded.

F9 prosp. rep. by 2005 NI 10

F10 prosp. insertion by 2005 NI 10