3 PB Barristers
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5 Contributions by 3 PB Barristers Experts
PRACTICE NOTES
Effect of a bankruptcy restrictions order
The effect of a bankruptcy restrictions order (BRO) is to place extensive limits on a bankrupt. These mirror the constraints in force before discharge from bankruptcy, and there are further prohibitions beyond insolvency law, e.g. not serving as a local councillor. Where a bankrupt is made subject to a BRO, those limits persist for the length of the BRO, irrespective of whether discharge has occurred. Failing to observe a BRO is a criminal offence. Anyone breaching a BRO may face prosecution and can be fined, imprisoned, or both. Further information on the restrictions arising from a BRO is outlined below.
Duration of a BRO
A BRO under the Insolvency Act 1986 (IA 1986) may run from two to fifteen years. The period imposed in any case is set by reference to the seriousness of the misconduct that resulted in the BRO being
Restructuring & Insolvency
PRACTICE NOTES
A bankrupt is normally discharged from bankruptcy twelve months after the start of the process, in the ordinary course of events, unless the court orders that discharge to be postponed because the bankrupt has not co-operated with the official receiver (OR) or the trustee in bankruptcy (trustee)—see section 279 of the Insolvency Act 1986 (IA 1986). Upon discharge, the disqualifications and restrictions attaching to an undischarged bankrupt come to an end without undue delay. For more detail on what those disqualifications and restrictions comprise, see Practice Note: The immediate effects of a bankruptcy order on the bankrupt.
What are bankruptcy restrictions orders and why they were introduced?
In bankruptcies that are not merely the product of honest misfortune—but stem from misconduct or recklessness by the bankrupt—it is thought right that the bankruptcy disqualifications and restrictions should continue beyond one year, to safeguard the public
Restructuring & Insolvency
PRACTICE NOTES
A bankrupt is discharged from bankruptcy one year after the bankruptcy begins, unless the court suspends that discharge because the bankrupt has failed to co-operate with the official receiver (OR) or the trustee in bankruptcy (trustee) (IA 1986, s 279). On discharge, the disqualifications and restrictions that apply to an undischarged bankrupt come to an end. For further detail 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 cases where bankruptcy is not the product of honest misfortune, but arises from the bankrupt’s misconduct or recklessness, it is regarded as appropriate that the bankruptcy disqualifications and restrictions should continue for longer than one year, to protect the public interest and act as a deterrent. Accordingly, the Enterprise Act 2002 (EnA 2002)
Restructuring & Insolvency
PRACTICE NOTES
Practice Note
This Practice Note presents a concise overview of key elements of the Fisheries Act 2020 (FiA 2020), described as the UK’s first wholly domestic fisheries law for 40 years. The FiA 2020 received Royal Assent on 23 November 2020. Under FiA 2020, s 54, commencement of certain provisions and schedules was deferred. Since 1 March 2021, every part of the Act has been in effect. From 31 December 2020, the UK Government has possessed full authority to determine who may fish within UK waters. The FiA 2020 sets out measures concerning fisheries, fishing, aquaculture and marine conservation, creating the statutory framework for regulating UK fisheries and empowering government to make detailed secondary legislation for that purpose. Schedule 11 to the FiA 2020 amended the Assimilated Common Fisheries Policy Regulation (EU) No 1380/2013 (Assimilated CFP Regulation) to maintain its continued
Environment
PRACTICE NOTES
An income payments agreement (IPA) is a counterpart to an income payments order (IPO), used where a bankrupt person consents to pay their spare income into the bankruptcy estate. Such contributions are made voluntarily rather than by a court order. To explore IPAs more fully, it helps to revisit the concept of an IPO.
What is an IPO and when is it used?
Once a bankruptcy order is made against an individual, the bankrupt no longer has to make further direct payments to creditors. Frequently, this means their income exceeds what is required for ordinary household outgoings. While the bankrupt remains undischarged, the court may, under section 310 of the Insolvency Act 1986 (IA 1986), impose an IPO, specifying the amount of the bankrupt’s income that is to be claimed for the benefit of the estate during the time the order is in force, as
Restructuring & Insolvency
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