Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies
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11. Can Mr. T apply for an early discharge of the bankruptcy order even if its effective period has not expired?

If Mr. T has not previously been adjudged bankrupt, then he may at any time apply to the Court for an early discharge. If he has been previously adjudged bankrupt, then he may make the application not less than 3 years after the date of the bankruptcy order.

However, the Court may not make the order for early discharge if, for example, the bankrupt:

  1. has previously entered into an individual voluntary arrangement (IVA);
  2. has unsecured liabilities that exceed 150% of the income which the trustee determines that was derived by the bankrupt during the year immediately before the date of the bankruptcy order;
  3. has failed to disclose a beneficial interest in any property;
  4. has failed to disclose any liability that existed at the date of the bankruptcy order;
  5. has after the date of the bankruptcy order continued to act as a director or taken part in the management of a company, except with the permission of the court; or
  6. has failed to co-operate with the trustee.

In addition, the Court may not grant the order for early discharge if the creditors raise valid objections against the discharge.

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