Insolvency Act 1986

281 Effect of discharge. E+W

(1) Subject as follows, 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 relased.

(3) Discharge does not release the bankrupt from any bankruptcy debt which he incurred in respect of, or forbearance 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 an enactment relating to the public revenue or of a recognisance, with the consent of the Treasury.

(5) Discharge does not, except to such extent and on such conditions as the 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, [F1 or to pay damages by virtue of Part I of the Consumer Protection Act 1987, being in either case] damages in respect of personal injuries to any person, or

(b) arises under any order made in family proceedings [F2 or in domestic proceedings].

(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 section—

• [F3 “domestic proceedings” means domestic proceedings within the meaning of the M1 Magistrates’ Courts Act 1980 and any proceedings which would be such proceedings but for section 65(1)(ii) of that Act (proceedings for variation of order for periodical payments);]

• [F3 “family proceedings” means the same as in Part V of the M2 Matrimonial and Family Proceedings Act 1984;]

• [F3 “family proceedings” means—

(a) family proceedings within the meaning of the M3 Magistrates’ Courts Act 1980 and any proceedings which would be such proceedings but for section 65(1)(ii) of that Act (proceedings for variation of order for periodical payments); and

(b) family proceedings within the meaning of Part V of the M4 Matrimonial and Family Proceedings Act 1984.]

• “fine” means the same as in the Magistrates’ Courts Act 1980; and

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

Textual Amendments

F1 Words substituted by Consumer Protection Act 1987 (c. 43, SIF 109:1), ss. 41(2), 47(1)(2), 48, Sch. 4 para. 12

F2 Words repealed (prosp.) by Children Act 1989 (c. 41), ss. 92, 108(2)(6)-(8), Sch. 11 Pt. II para. 11(1), Sch. 14 paras. 1(1), 27(4), Sch. 15.

F3 Definition of “family proceedings" paras. (a)(b) substituted (prosp.) for the definitions of “domestic proceedings" and “family proceedings" by Children Act 1989 (c. 41), ss. 92, 108(2)(6)(8), Sch. 11 Pt. II para. 11(2), Sch. 14 para. 1(1).

Modifications etc. (not altering text)

C1 S. 281(4) extended by Drug Trafficking Offences Act 1986 (c. 32, SIF 39:1), s. 39(5)

C2 S. 281(4) amended by Criminal Justice Act 1988 (c. 33, SIF 39:1), ss. 123, 170, Sch. 8 para. 6, Sch. 15 para. 110

C3 S. 281(4) amended by Criminal Justice (Scotland) Act 1987 (c. 41, SIF 39:1), ss. 45(4), 47(4)(a)

Marginal Citations

M1 1980 c. 43.

M2 1984 c. 42.

M3 1980 c.43(82).

M4 1984 c.42(49:3).