Bankruptcy Restriction Order (BRO)

A Bankruptcy Restriction Order (BRO) is made by the Court where a bankrupt is seen as having engaged in some form of dishonest activity. 

We advise clients on defending BRO applications and negotiate Bankruptcy Restriction Undertakings (BRUs) which can be more advantageous than BRO’s in terms of reducing the term of the bankruptcy restriction, namely by shortening the period of suspension from discharge.

A bankrupt who is subject to either a BRU or BRO has restrictions placed upon him for a period of between 2-15 years.  These restrictions are the same as those imposed in bankruptcy which include:

  • A bankrupt is required to declare his bankruptcy to any potential lender if he is wishes to borrow more than £500.
  • A bankrupt is unable to act as a company director.

A BRO may be sought if:

  • A bankrupt has disposed of his assets for less than their market value.
  • A bankrupt makes payments to friends and family and thereby reduced the value of his assets.
  • A bankrupt incurred debts knowing that they could not repay these.
  • A bankrupt engaged in unreasonable extravagant spending resulting in his creditors not being paid.
  • A bankrupt gambled away money or has been involved in bad or reckless speculation causing his creditors loss.
  • A bankrupt has committed fraudulent activity causing his creditors loss.