Effect and duration of bankruptcy restrictions orders (BROs)
Produced in partnership with Lydia Pemberton of 3PB
Effect and duration of bankruptcy restrictions orders (BROs)

The following Restructuring & Insolvency guidance note Produced in partnership with Lydia Pemberton of 3PB provides comprehensive and up to date legal information covering:

  • Effect and duration of bankruptcy restrictions orders (BROs)
  • Effect of a bankruptcy restrictions order
  • Duration of a BRO
  • The bankruptcy restrictions register
  • Effects on the bankrupt
  • The cessation of a BRO
  • Effect of an annulment on a BRO or interim BRO

Effect of a bankruptcy restrictions order

The effect of a bankruptcy restrictions order (BRO) is to impose wide ranging restrictions on a bankrupt. These include the restrictions that a bankrupt is subject to prior to their discharge from bankruptcy, although there are additional restrictions that apply outside of insolvency law, eg not to act as a local councillor. If a bankrupt is the subject of a BRO, these restrictions continue for the duration of the BRO, regardless whether the bankrupt has been discharged.

It is a criminal offence not to comply with the terms of a BRO. If a person is subject to a BRO and acts contrary to any of the restrictions, they may be prosecuted and may be fined or imprisoned or both.

Full details of the restrictions imposed by a BRO are set out below.

Duration of a BRO

A BRO made under the Insolvency Act 1986 (IA 1986) can last anywhere between two and fifteen years. The period which is ordered in any given case will be determined according to the gravity of the misconduct that led to the BRO being made.

For further reading on the circumstances that can lead to a BRO being made and its duration, see Practice Note: In what circumstances can a bankruptcy restrictions order (BRO) be made?

The BRO comes into effect