Bankruptcy restrictions order (BRO) meaning

Bankrupt's conduct In determining whether to impose a bankruptcy restrictions order (BRO), the court examines the bankrupt’s behaviour. This typically covers actions that resulted in their inability to meet debts, though the court may take into account any behaviour, occurring before or after the bankruptcy. For guidance on who may bring the application, and the timing and procedure, see Practice Note: Bankruptcy restrictions orders (BROs). Under the Insolvency Act 1986 (IA 1986), a range of behaviours by the bankrupt is set out that the court may weigh when deciding whether a BRO is justified...

What is a Bankruptcy Restriction Order? When a person is made bankrupt (sequestrated), they are bound by restrictions under the Bankruptcy (Scotland) Act 2016 (Ba(S)A 2016) and other related legislation. Ordinarily, twelve months from the start of sequestration, the debtor is discharged and the limitations that apply to undischarged bankrupts no longer apply. A Bankruptcy Restriction Order (BRO) can be imposed on a debtor following an application to the Accountant in Bankruptcy (AiB) (see Practice Note: Scotland: the Accountant in Bankruptcy) or to the Sheriff, and it maintains restrictions after discharge from sequestration. For commonly used Scottish insolvency terminology, see Practice Note: Glossary of Scottish insolvency words and expressions. Effects of a BRO A BRO places ongoing restrictions on the debtor for the period stipulated in the order. The Ba(S)A 2016 does not provide a comprehensive list of all restrictions that apply where a BRO is in force. Instead, reference must be made to other legislation, which specifies that an individual subject to a BRO is disqualified...

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 made...