Discharge from Bankruptcy

Mr David Ong asked the Minister for Law what are the rules, regulations and conventions in deciding when a bankrupt can be considered for a discharge.

There are two avenues through which a bankrupt may be discharged. First, the High Court may discharge a bankrupt by granting him an Order of Discharge, following an application made either by the bankrupt or the Official Assignee.

Second, the Official Assignee may discharge a bankrupt by issuing him a Certificate of Discharge, provided his proven debts do not exceed $500,000 and at least three years have lapsed since the commencement of his bankruptcy.

In deciding whether to grant a discharge to a bankrupt, the High Court and the Official Assignee take guidance from relevant case law that has examined the issue of discharge. Some of the factors that are considered include the cause of the bankrupt's insolvency and his culpability in incurring the debts; the bankrupt's conduct prior to and during his bankruptcy; the contributions made by the bankrupt for the benefit of his creditors; and whether there are any objections by the creditors to the discharge.

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