What is a Bankruptcy Restriction Order?
Bankruptcy is one of the more extreme debt solutions available to people who have failed to properly manage their finances, but it also happens to be among the most effective. A bankrupt can be discharged of his debts in as little as 12 months, but the insolvency measure is by no means without consequence.
A Bankruptcy Restriction Order (BRO) can be imposed on a bankrupt if the Official Receiver – a court officer who deals with insolvency petitions – has reason to believe that the debtor in question has not been honest about his assets.
The Official Receiver can impose a BRO, which lasts between two and fifteen years, if the debtor has been dishonest about his assets at any time before or during his period as a bankrupt. Common reasons for the BRO include unreasonable spending, gambling or knowledge that debts would not be repaid. A BRO, which extends the period of restrictions applicable under an insolvency order, can also be imposed if the bankrupt attempts to protect his assets from the Official Receiver.