Most people are discharged from bankruptcy after 12 months, and the restrictions end then. But if the Official Receiver finds blameworthy conduct, the restrictions can be extended.
The short answer
- A BRO lasts between 2 and 15 years.
- It can be made by the court, or agreed as a bankruptcy restrictions undertaking.
- Reasons include hiding assets, gambling, or taking credit with no intention of repaying.
- Restrictions include limits on borrowing and being a company director.
- BROs are listed on the public insolvency register.
What leads to a BRO?
- Hiding or transferring assets before bankruptcy
- Giving preference to certain creditors, such as family
- Running up debts with no reasonable expectation of repaying
- Gambling or reckless spending
- Not co-operating with the Official Receiver
What restrictions apply?
During a BRO you can’t borrow more than £500 without disclosing it, act as a company director without court permission, or trade under a different name without telling people about the BRO. Your debts are still written off on discharge.
What is a DRO restrictions order?
A similar regime applies to DROs: a debt relief restrictions order can extend DRO restrictions for 2 to 15 years.
Common questions
Does a BRO stop my debts being written off?
No. You’re still discharged from your debts, but the restrictions continue for longer.
Can I agree to a bankruptcy restrictions undertaking?
Yes. Agreeing to an undertaking avoids court proceedings and has the same effect as an order.
Will a BRO show on my credit file?
It’s on the public insolvency register, and lenders may see it during checks.
Getting help
You don’t have to deal with debt on your own. Free, impartial advice is available from MoneyHelper, StepChange and National Debtline. If you want to talk through whether a formal solution such as an IVA could be suitable, you can also get in touch with us.