Bankruptcy restrictions undertakings (BRUs)
Produced in partnership with Lydia Pemberton of St Philips Chambers
Bankruptcy restrictions undertakings (BRUs)

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

  • Bankruptcy restrictions undertakings (BRUs)
  • What is the bankruptcy restrictions regime and why was it introduced?
  • Costs
  • The bankruptcy restrictions register

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 the trustee in bankruptcy (trustee)—section 279 of the Insolvency Act 1986 (IA 1986). On discharge, the disqualifications and restrictions which apply to an undischarged bankrupt will cease. For further reading on those disqualifications and restrictions, see Practice Note: The immediate effects of a bankruptcy order on the bankrupt.

What is the bankruptcy restrictions regime and why was it 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 (EnA 2002) inserted a new section (IA 1986, s 281A) and Schedule (IA 1986, Sch 4A) into the IA 1986, so that with effect from 1 April 2004, the bankruptcy restrictions regime was in force. This means that, if a bankruptcy restrictions order (BRO) is made by the court (or a bankruptcy restrictions undertaking (BRU) is accepted by the Secretary of State for