Client discharge
In a FAB case, the client is normally discharged from their debts in 12 months.1s137(2) B(S)A 2016 This does not mean they have no other responsibilities under the bankruptcy. The acquirenda rules still apply for 48 months after the date of sequestration. However, discharge is not automatic and needs to be requested by the trustee. The trustee must recommend the client’s discharge to the AiB within 10 months of the date of sequestration. Alternatively, they can recommend that the client is not discharged. This could be due to non-co-operation with the trustee or non-compliance with the DCO.2s137(4)(a) B(S)A 2016 If the situation is resolved, the trustee can submit a subsequent report to recommend the client’s discharge. Where the AiB is the trustee, it follows the same process and decides, within 12 months of the date of sequestration, whether to discharge the client or not. In a MAP case, the client is normally discharged from their debts in six months.3s140 B(S)A 2016 This does not mean they have no other responsibilities under the bankruptcy. The acquirenda rules still apply for 48 months after the date of sequestration. Where the trustee disagrees that the client has co-operated fully, they can delay their discharge. Where the client has co-operated fully with the trustee, the client is automatically discharged six months after the date of bankruptcy. A certificate of discharge is issued automatically and posted to the client. When the client is discharged, they are discharged of any liabilities due at the date of sequestration.
However, not all debts discharge. For example, an obligation to pay aliment or a periodical allowance payable on divorce is not discharged by:4s145 B(S)A 2016 •any liability to pay a fine or other penalty due to the Crown;
•any liability to pay a fine imposed in a justice of the peace court (or a district court);
•any liability under a compensation order (within the meaning of section 249 of the Criminal Procedure (Scotland) Act 1995);
•any liability to forfeiture of a sum of money deposited in court under section 24(6) of the Criminal Procedure (Scotland) Act 1995;
•any liability incurred because of fraud or breach of trust.
While being discharged of their debts, the client still has obligations under the bankruptcy and the acquirenda rules apply.