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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