4.4 What happens to the debts I am owed?
Once a debtor is discharged they are no longer liable to repay debts owed prior to their bankrupty, although there are exceptions to this.
They are still personally responsible for a number of their debts including:
- student loans;
- fines, penalties, compensation and forfeiture orders imposed by any sheriff;
- any liability incurred as a result of fraud or breach of trust;
- any liability to forfeiture of bail;
- any obligation to pay aliment; and
- any periodical payment ordered by the sheriff to an ex-spouse if they are divorced.
Pre-bankruptcy creditors (except for those whose debts listed above) will not be able to take any legal action to recover their debts. However, the debts still exist until the trustee is discharged. The debtor is still responsible for paying any contributions agreed with the trustee to enable the debts to be paid.
Creditors can still take action against anyone else, for example the debtor's spouse, if they have had joint liability for the debt.
Debtors are also responsible for repaying any debts which they have run up after they were made bankrupt, for example, ongoing liabilities for rent, council tax, gas, electricity, telephone.