This Debt Solution Applies to Residents of England, Wales and Northern Ireland
There are a set of rules that you have to follow when you are declared bankrupt. These duties are referred to as bankruptcy restrictions.
What are the restrictions of bankruptcy?
The restrictions that are imposed when you go bankrupt are likely to affect all aspects of your finance, career and personal life. It can have an impact on other aspects as well. Following are the restrictions during bankruptcy:
- You are restricted to obtain new credit or loan over £500, without informing the lender or creditor about your bankruptcy
- It would be impossible for you to purchase a home through a right to buy scheme when you are bankrupt
- If you own a business, you cannot trade using another business name which is different from the one you used before bankruptcy unless you declare your bankruptcy to the public
- You cannot hold a director position of a limited company and be part of the operations unless with the court’s permission or consent
- You will be rejected for certain positions or jobs upon employment
- It would be impossible to help vulnerable individuals since you’re not allowed to
- You cannot act as an attorney in managing other person’s financial affairs
- You’re bound to cooperate and obey the OR or Official Receiver at all costs
- If you reside in Northern Ireland, you are prohibited to go out of the country without the court’s consent
When do bankruptcy restrictions end?
Most of the time, bankruptcy restrictions last for about 12 months after being discharged. However, the official receiver can extend the restrictions under BRU or BRO when bankruptcy involved fraud, dishonesty and negligence. BRU or bankruptcy restriction undertaking can last up to 15 years. This can happen if, for instance, you did not declare certain assets or was in debt due to gambling.
What can happen if I violate bankruptcy restrictions?
Once the official receiver determines you guilty of not obeying bankruptcy restrictions, they will further investigate to get details. If you do not comply, they can appeal to the court in extending or suspending the discharged.
Besides, violating these restrictions is a ground for a criminal offence. This means failure to cooperate can result in fines or possible imprisonment. Also, you can be issued with a BRO or a BRU.
Free Bankruptcy Help and Advice
Before you decide to file for bankruptcy, make sure you contact us. We can help you find out if bankruptcy is the best solution for you.
You can use our debt advice tool or contact us and speak to our debt experts. We can help you in choosing the best alternatives to knock down your debts. We keep everything confidential. Should you wish to speak via phone, call us on 0800 193 1024.