If you are bankrupt and the official receiver thinks you have been dishonest or are to blame for your debts, the court can make a bankruptcy restrictions order (BRO) against you.

Your bankruptcy already places restrictions on what you can do for a set period. A BRO extends this period of restrictions for between 2 and 15 years and subjects you to further restrictions

Examples of behaviour that can lead to a BRO include:

  • giving away assets or selling them for less than their value
  • paying some creditors in preference to others
  • borrowing money that you know you cant repay
  • neglecting your business so that your debts increase
  • not cooperating with the official receiver
  • behaving fraudulently e.g. giving false details to obtain credit

This is not a complete list. Any dishonest or blameworthy behaviour could lead to a BRO. The court may consider conduct that occurred before or after your bankruptcy order.

Being bankrupt for a second time in six years is also a matter to be considered but is not, in itself, sufficient reason to apply for a BRO.

The fact that you have done one of these things doesn’t mean that you will be automatically subject to a BRO, but it does mean that the official receiver needs to look at the conduct and decide whether the public needs protection

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Specific advice should be obtained before taking action, or refraining from taking action, on any of the issues covered above.

For further information, please contact one of our client service team who will be able to assist you, or fill out the form below

For further information, please contact one of our Client Services Team who will be able to assist you.