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Bankruptcy Restriction Orders

Legal Advice on Bankruptcy Restriction Orders

If the official receiver or trustee in bankruptcy (“the Officeholder”) believes that a bankrupt has been dishonest or is to blame for the debt, they can apply to Court for a bankruptcy restriction order (BRO). This may increase the restrictions placed on the bankrupt and can extend the bankruptcy for up to 15 years.

Some examples of why a BRO may be ordered:

The reasoning behind a BRO is to protect the public, by restricting the bankrupt from undertaking actions which would be determined as risky due to their previous conduct.

Some of those restrictions are:

What can you do?

When faced with allegations from the Officeholder, you are given 21 days to respond. The Officeholder may give you the opportunity to accept lesser restrictions if you provide a bankruptcy restriction undertaking, which avoids the requirement to go to Court.

At this time, it is crucial that you seek legal assistance. We will assist you in potentially reducing the restrictions or preventing the BRO altogether.

What happens if you breach a Bankruptcy Restriction Order?

If you breach the restrictions set out in a BRO you may be committing a criminal offence, and in the more severe cases you can be sent to prison. A BRO can be extended if the Officeholder determines that the bankrupt has not complied with the restrictions.

If you attempt to act as a company director, or continue to be involved within a company’s management you may become personally liable for the debts that have arisen during that time. The Officeholder is also able to bring a claim against any other persons who have assisted the bankrupt in breaking their restrictions.

If you believe you have broken the restrictions, seek legal advice urgently

Contact a Specialist in Bankruptcy Restriction Orders

If you breach the restrictions set out in a BRO you may be committing a criminal offence, and in the more severe cases you can be sent to prison. A BRO can be extended if the Officeholder determines that the bankrupt has not complied with the restrictions.

If you attempt to act as a company director, or continue to be involved within a company’s management you may become personally liable for the debts that have arisen during that time. The Officeholder is also able to bring a claim against any other persons who have assisted the bankrupt in breaking their restrictions.

If you believe you have broken the restrictions, seek legal advice urgently.

contact a corporate recovery solicitor

If you are looking for more information or guidance in respect of bankruptcy restriction orders please get in touch with Farleys’ personal insolvency experts on on 0333 331 4380

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