Discharge of the client
Discharge is conditional on the client co-operating with the trustee and terms of the trust deed. The client does not need to have paid all contributions and realised all assets to be discharged. The trustee must be satisfied that the debtor has co-operated with them and met the obligations of the trust deed. The trustee applies to AiB for the debtor discharge on Form 5.
1 The trustee can refuse to discharge the client (see below).
The AiB then registers the discharge in the Register of Insolvencies. The date of discharge is the date on which it is registered.
2s184(2) and (3) B(S)A 2016The trustee must notify the client with a copy of the Form 5 and every known creditor of the date the client has been discharged. The trustee is entitled to charge a reasonable fee for a letter of discharge which is chargeable against the client’s estate.
Form 5 can be used by the client as proof of discharge.
On discharge from the PTD, the client is discharged from any outstanding unsecured debts and obligations for which they were liable at the date that they granted the trust deed.
There are some important exceptions to this rule.
A PTD does not discharge a debtor from:
3s184 (6) B(S)A 2016•any liability arising after the date on which the protected trust deed was granted;
•any liability or obligation mentioned in section 145(3) of the Act;
•any liability for a debt in respect of which a security is held if the secured creditor has agreed not to claim under the trust deed for any of the debt in respect of which the security is held.