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Bankruptcy Restrictions
Do you need help with bankruptcy restrictions
You cannot to do the following if you have been made bankrupt –
It is a criminal offence to fail to comply with any of these restrictions so it is very important to make sure you are aware of what you can and cannot do.
Bankruptcy Restrictions FAQ'S
Usually a year from the date of your bankruptcy order
These restrictions will apply until your bankruptcy ends. This is normally for one yearbefore you are discharged from bankruptcy. If you annul (cancel) your bankruptcy order by making an application to the court then these restrictions will be lifted as soon as your bankruptcy is annulled.
However, these restrictions can also be extended if you are found to have acted in a careless or dishonest way, or if you do not carry out your duties during your bankruptcy. This could happen for example, if you failto cooperate with your trustee in bankruptcy, or official receiver at the Insolvency service.
You may be asked by the official receiver to agree to a Bankruptcy Restrictions Undertaking (BRU) to extend the restrictions if you are have not cooperated. The official receiver may pursue a Bankruptcy Restrictions Order (BRO) by taking you to court if you do not agree to the BRU.
Yes, usually unless the trustee extends your bankruptcy by making an application for bankruptcy restriction order (BRO) or applies for an income payment order (IPO)
You will normally be discharged from bankruptcy after 12 months, regardless of whether all of your debts have been repaid.This period could be extended if you are made subject to a bankruptcy restriction undertaking (BRU) or bankruptcy restriction order (BRO), or if you failed to cooperate with your trustee in bankruptcy during the first 12 months.The details of the bankruptcy will stay on your credit record for at least six years from the date that your bankruptcy and your bankruptcy will be advertised in The Gazette.The trustee will also have up to three years to take any possession and sale action against your family home.
You will normally be discharged from bankruptcy after 12 months, regardless of whether all of your debts have been repaid.This period could be extended if you are made subject to a bankruptcy restriction undertaking (BRU) or bankruptcy restriction order (BRO), or if you failed to cooperate with your trustee in bankruptcy during the first 12 months.The details of the bankruptcy will stay on your credit record for at least six years from the date that your bankruptcy and your bankruptcy will be advertised in The Gazette.The trustee will also have up to three years to take any possession and sale action against your family home.
The official receiver or your trustee in bankruptcy may impose more serious restrictions such as an Income Payment Arrangement (IPA) or Income Payment Order (IPO), or a Bankruptcy Restrictions Order (BRO). The official receiver trustee in bankruptcy may require you to attend a public examination forcing you to attend court to provide answers to certain questions or provide documentation in relation to your finances.
A public examination is where the official receiver applies to the court for an order forcing you to attend court and respond to questions about your finances. This can happen at any time before the bankruptcy is discharged, which may be a reason the official receiver extends the initial 12 month period preventing you from obtaining your discharge from bankruptcy.
You may need help with an application to the court to set aside the order for examination. The court will consider several factors, such as whether the public examination would serve a useful purpose or whether you have co-operated fully with the official receiver or trustee in bankruptcy.
If the court finds that you have behaved in a dishonest or reckless manner, a Bankruptcy Restrictions Order (BRO) may be made against you.
This extends the time of the restriction which could remain for up to 15 years.
If you are subject to a BRO, you will also have extra restrictions. For example, you will not be able to be a Member of Parliament, a school governor or a local councillor, and you cannot exercise ‘right to buy’. Your creditors will also be informed of the BRO and your details will be published in a press notice issued by the court and appear on the insolvency register.
If you receive notice of bankruptcy restrictions being imposed you should immediately obtain expert advice in deciding whether to defend the application for the Bankruptcy Restriction order (BRO).
Alternatively, you can negotiate a shorter restriction period, by entering into a Bankruptcy Restriction Undertaking (BRU).
If the official receiver or trustee discovers you to have surplus money left over after each month after payment of your living costs, they may apply to the court for an Income Payment Order (IPO). This requires you to make payments for a three-year period, and you can still be chased for any missed payments after this time.
You maybe able to negotiate with your trustee to agree a lower monthly amount to be paid, known as an Income Payment Arrangement (IPA). This would be agreed out of court, and so you would avoid the costs of court proceedings.
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