Bankruptcy restrictions orders (BROs)

Produced in partnership with Lydia Pemberton of 3 PB Barristers
Practice notes

Bankruptcy restrictions orders (BROs)

Produced in partnership with Lydia Pemberton of 3 PB Barristers

Practice notes
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A bankrupt is discharged from bankruptcy one year after their bankruptcy commences, unless the court grants a suspension of that discharge by reason of a bankrupt's failure to co-operate with the official receiver (OR) or their trustee in bankruptcy (trustee)—see section 279 of the Insolvency Act 1986 (IA 1986). On discharge, the disqualifications and restrictions which apply to an undischarged bankrupt cease. For further reading on what these disqualifications and restrictions are, see Practice Note: The immediate effects of a bankruptcy order on the bankrupt.

What are bankruptcy restrictions orders and why they were introduced?

In those cases of bankruptcy which are not simply the result of honest misfortune—but are due to the bankrupt's misconduct or recklessness—it is considered appropriate to ensure that the disqualifications and restrictions imposed in bankruptcy are maintained for a longer period than one year, to protect the public interest and serve as a deterrent. As a result, the Enterprise Act 2002 inserted a new section (IA 1986, s 281A) and Schedule (IA 1986, Sch 4A) into the IA 1986, so that with

Lydia Pemberton
Lydia Pemberton chambers

Lydia’s practice comprises contentious chancery matters, specialising in contentious probate, and insolvency – dead people, dead companies!

She has a particular interest in personal insolvency and advises both trustees and debtors across all aspects of this area. She has extensive experience in section 423 IA 1986 applications and sham transactions.

Lydia represents the Attorney General in CDDA and IA proceedings and acts for both office-holders and directors following a company insolvency.

Her work within chancery focuses on the substantive validity of wills and other claims against estates by beneficiaries, creditors and Inheritance Act claimants.

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Jurisdiction(s):
United Kingdom
Key definition:
Bankruptcy definition
What does Bankruptcy mean?

The court supervised process whereby the assets of an insolvent individual are realised for the benefit of his creditors.

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