Bankruptcy Restriction Order (BRO)
A BRO is an order that can be made against you when you have been made bankrupt and it is found that your behaviour prior to bankruptcy is dishonest, reckless or fraudulent.
A BRO can extend certain restriction of bankruptcy for up to 15 years.
The effects of a BRO includes:-
- Obtaining credit beyond £500 without Court’s permission is a criminal offence
- The Bankrupt has to trade in the name under which the they were adjudged bankrupt
- Prohibition from acting as a director of a limited company
- 2 – 5 years Culpable Behaviour – incurring debt knowing you could not settle it
- 5 – 10 years Reckless Behaviour – for example racking up debts by gambling
- 10 – 15 years Dishonest Behaviour – getting involved in fraudulent activities
- Incurring debts that you knew, or ought to have known, you had no reasonable chance of repaying
- Giving away assets or selling them at less than their value
- Deliberately paying off some creditors in preference to others
- Gambling or making rash speculations or being unreasonably extravagant
- Failing to keep or produce records that would explain a loss of money or property
- Behaving fraudulently e.g. giving false details to obtain credit
- Causing your debts to increase by neglecting your business affairs
- Failing to supply goods or services that have been paid for (e.g. taking deposits)
- Carrying on a business when you knew or ought to have known you could not pay your debts
- Not co-operating with the official receiver or trustee.
Do you need help?
Specialist advisors are available who can advise you on the most appropiate solution to bring you relief from debt