6.1 What happens to my debts after I am discharged?
Once you are discharged you no longer have a personal liability to repay the debts which you had when you were made bankrupt although there are exceptions to this. You are still personally responsible for:
- student loans;
- fines, penalties, compensation and forfeiture orders imposed by any sheriff;
- any liability incurred as a result of fraud or breach of trust on your part;
- any liability to forfeiture of bail;
- any obligation to pay aliment; and
- any periodical payment ordered by the sheriff to your ex-spouse if you are divorced.
Your pre-bankruptcy creditors, except those above, will not be able to take any legal action against you to recover their debts. However, the debts still exist and you are still responsible for paying any contributions agreed with your trustee.
The creditor can still take action against anyone else, for example your spouse, who had a joint liability for the debt.
You are still responsible for making payments to your secured creditor, for example, for the mortgage on your house.
You are also responsible for repaying any debts which you have run up after you were made bankrupt, for example, ongoing liabilities for rent, council tax, gas, electricity, telephone.