IVA Glossary
U
Undischarged Bankrup
A person against whom a bankruptcy order is made and who is not discharged from it is called an "undischarged bankrupt". So these people are bankrupts whom the Court has not given an 'order of discharge'. Generally speaking, undischarged bankrupts are not released from their debts, and are not freed from legal disabilities. Therefore, they are not able to obtain a credit, or if they are, this is only beyond a specified limit. Moreover, in the latter case, the creditor in question must also be notified about the borrower's undischarged status.
Undischarged bankrupts are also ineligible for holding certain public offices. So they cannot be members of legislature, neither can they be directors of a firm.
Compared to undischarged bankrupts, discharged bankrupts are people whom the Court has given an order of discharge. According to this order, the discharged bankrupt is released from all of his/her debts, and is also made free from common legal disabilities generally related to being a bankrupt. This way the debtor becomes able to make a fresh start: discharged bankrupts can apply for a credit, or may start a new business.
Undischarged bankrupts are also ineligible for holding certain public offices. So they cannot be members of legislature, neither can they be directors of a firm.
Compared to undischarged bankrupts, discharged bankrupts are people whom the Court has given an order of discharge. According to this order, the discharged bankrupt is released from all of his/her debts, and is also made free from common legal disabilities generally related to being a bankrupt. This way the debtor becomes able to make a fresh start: discharged bankrupts can apply for a credit, or may start a new business.
