The 12-month standard period
Under current rules, most bankrupts are automatically discharged after 12 months from the date of the bankruptcy order. No application is needed — discharge happens automatically.
Discharge releases you from most of the debts included in the bankruptcy. Some debts survive (see the FAQ on debts not cleared).
The credit file entry stays for six years from the date of the bankruptcy order, not from discharge.
Income Payment Agreements and Orders
If the Official Receiver decides you have surplus income during the bankruptcy, they can require you to make monthly payments — an Income Payment Agreement (voluntary) or Income Payment Order (imposed by court if you refuse).
These payments last up to three years from the date of the agreement or order. This is separate from the 12-month bankruptcy discharge — even after you are discharged, IPA/IPO payments continue.
The typical trigger is surplus income above £20-£30 per month using the Official Receiver's expenditure guidelines.
BROs and BRUs
A Bankruptcy Restrictions Order (BRO) or Undertaking (BRU) can extend the restrictions of bankruptcy for 2-15 years beyond the standard 12 months. These are imposed where there is evidence of dishonest conduct, concealment, or misconduct in the run-up to bankruptcy.
BROs are relatively rare and are not automatic. Most straightforward bankruptcies complete cleanly at 12 months.
Asset realisation
The Trustee (or Official Receiver acting as Trustee) can continue dealing with assets beyond the 12 months. For example, dealing with a house sale, tax refunds, or an unresolved employment tribunal claim can take years.
You are still discharged and free of the debts, but the estate remains open until all assets are dealt with.