Bankruptcy restrictions orders (BROs)
Produced in partnership with Lydia Pemberton of St Philips Chambers
Bankruptcy restrictions orders (BROs)

The following Restructuring & Insolvency practice note produced in partnership with Lydia Pemberton of St Philips Chambers provides comprehensive and up to date legal information covering:

  • Bankruptcy restrictions orders (BROs)
  • Coronavirus (COVID-19)
  • What are bankruptcy restrictions orders and why they were introduced?
  • Similarity with Company Directors Disqualification Act 1986 proceedings
  • Who can apply for a BRO?
  • When can proceedings be brought?
  • Permission to extend time to make the application
  • Interim BROs
  • The procedure and timing of an application for a BRO
  • Costs
  • More...

Bankruptcy restrictions orders (BROs)

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.

Coronavirus (COVID-19)

This content contains guidance on subjects impacted by the Coronavirus Act 2020 and related changes to court procedures and processes as a result of the Coronavirus (COVID-19) pandemic, including the Temporary Insolvency Practice Direction 2020. For further information, see Practice Notes: Coronavirus (COVID-19)—Changes to the court process in insolvency proceedings and The Temporary Insolvency Practice Direction Supporting the Insolvency Practice Direction (April 2021). For related news, guidance and other resources to assist practitioners working on restructuring and insolvency matters, see: Coronavirus (COVID-19)—Restructuring & Insolvency—overview.

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,

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