To be able to go bankrupt you are required to be as honest as you can be and disclose any assets, bank accounts, life policies, savings and all other relevant information on your bankruptcy petition and statement of affairs. This will then be viewed by the official receiver for him/her to make the decision whether to make you bankrupt.
If during his/her enquiry towards your bankruptcy the official receiver feels that you have been dishonest or tried to hide certain assets either before or during your bankruptcy or that your neglect has led to your bankruptcy then you may be subject to a bankruptcy restriction order.
The official receiver will have to apply to the court and the court may make the order against you which will last anywhere between 2 to 15 years and during the bankruptcy restriction order you will also continue to be under the restrictions of the bankruptcy also.
The restrictions of a bankruptcy restriction order include the restrictions that you would normally be subject to when being made bankrupt.
- You lose control of your assets (house, savings, expensive car (over £2500)
- You cannot obtain credit for over £500 without the declaring that you are bankrupt..
- You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
- You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
If you are subject to a bankruptcy restriction order or even go against the normal restrictions of bankruptcy, it is a criminal offence and you may be prosecuted which could result in a fine or even imprisonment.
Most bankruptcy restriction orders are applied for by the official receiver within the first 12 months of your bankruptcy, although an application can be put into the court to ask for it to be reviewed at a later date if need be.
What will result in you being subject to a bankruptcy restriction order?
The following is a good example of why you could be subject to a bankruptcy restriction orderpt.
- Transferring or giving away assets less than their actual value.
- Gambling or living an unreasonably extravagant lifestyle.
- Deliberately paying off certain creditors in preference to others.
- Incurring debts that you knew that you would never be able to pay back
- Fraud
- Being bankrupt twice within 6 years
- If you fail to co-operate reasonably with the official receiver
If you are due to be subject to an income payment agreement then the official receiver will write to you 6 weeks before the court hearing date, You will be given the reasons why they are applying to the courts for the BRO with supporting evidence, you will be told the hearing date and how long they are applying for the BRO to stand for. You will be asked to sign it and return it to the courts within 14 days.
Complete our short enquiry form to see how we can assist you and we will call you back. Alternatively you can contact us. |
