Automatic discharge signifies the end of bankruptcy and occurs 3 years and 1 day after your Statement of Affairs was lodged and accepted by the official Receiver at the Australian Financial Security Authority  (AFSA). The discharge is a process of law that officially concludes the legal status of bankruptcy against the bankrupt. As the discharge is automatic, the Registered Trustee or AFSA do not need to apply for the bankrupt to be discharged nor is there any fee. Your Registered Trustee should provide you with a certificate of discharge as a matter of course, however, if you do not receive one, you may search the public record otherwise known as the National Personal Insolvency Index (NPII) database.

Whilst automatic discharge is most commonly granted, there are cases where an objection to discharge may be lodged if the bankrupt has been uncooperative during the period of the bankruptcy.

The grounds on which an objection can be lodged vary but may include: failing to pay income contributions, failing to disclose all debts or failing to advise the trustee of an address change.

If the reasoning behind the objection is proven to be valid, the bankruptcy will be extended to either five or eight years. Click here to read how your bankruptcy can be extended.

Once discharged the bankrupt has a legal obligation to continue assisting the trustee until all administration matters connected to the bankrupt estate has been completed and finalised.

If you or your spouse are contemplating bankruptcy and you want to understand how you get discharged from bankruptcy, then call us today on 1800 462 767 to discuss your options.

All calls are free, entirely confidential and if required, anonymous.