From my reading on the Citizens Information site re bankruptcy it's saying that debts are not automatically cleared. See last two lines below ...
Discharge from bankruptcy
You are automatically discharged from bankruptcy 1 year (formerly 3 years) after the order of adjudication. Your name will remain on the register, as a discharged bankrupt. If there is an Income Payment Agreement or an Income Payment Order in place, you will still have to comply with it until it expires. These arrangements can last up to 3 years (formerly 5 years).
You can also be discharged from bankruptcy if you meet certain conditions, as follows:
If your assets have been sold and all your costs, fees, expenses and preferential debts (such as certain tax debts) have been paid, it is possible for you to be discharged from bankruptcy even if you have not paid all of your debts.
You can be released from bankruptcy in any of the following ways:
- If your creditors have been paid in full
- If all of your unsecured creditors give their consent
- After agreeing and paying a settlement with at least 60% of your unsecured creditors (called an Offer of Composition)
- Automatically after 1 year (formerly 3 years) as noted above
When you are discharged from bankruptcy on grounds 1 to 3 above, any money or property remaining in your estate is returned to you, provided all the costs, court fees, expenses and preferential debts of bankruptcy are paid.
If you are automatically discharged after the end of the normal bankruptcy term without having satisfied your creditors on grounds 1 to 3 above, after discharge all your assets continue to vest in the Official Assignee for payment of all your debts, costs, fees and expenses in bankruptcy.