Trustee’s refusal to discharge the debtor
A trustee can refuse to discharge a client of their debts.1s184(4) B(S)A 2016 If, on request of the debtor, or at the end of the 48-month payment period, the trustee considers that an application for the client’s discharge is not appropriate, the trustee must inform the client in writing and state:
•the reasons why they do not consider discharge appropriate; and
•that the client is not discharged from their debts; and
•the client’s right to appeal the trustee’s decision.
A copy should be sent to the AiB within 21 days of the trustee issuing their notification. If the trustee refuses to discharge the client, they are not discharged from their debts.
The trustee may still seek their own discharge from the creditors, even if they refuse to discharge the client.
It is good practice for the trustee to notify the creditors if the client is to be discharged or not.
Where the PTD is administered in line with the PTD protocol, when wishing to refuse the client’s discharge, the trustee must first submit to the AiB a ’Refusal of Debtor Discharge’ document.2 Due to the significant implications for a client if they are not discharged from their PTD debts, the trustee is asked to explain the reasons for their decision in an agreed format, for AiB to consider, before the issue of the notice to the client.
If the AiB disagrees with the trustee’s decision, it contacts the trustee to discuss matters.