A BRU is a bankruptcy restrictions undertaking and is something agreed by the bankrupt and the official receiver's office. A BRO is a bankruptcy restrictions order and happens where a bru has not been arrived at, perhaps because the bankrupt would not agree to one and the matter ends up in the county court for ajudged to decide if one should be applied. bru's and bro's happen where the OR thinks that the bankrupt has been to blame for his/her situation or where he/she has not cooperated with the investigation and various other reasons. It is haphazard who gets one. It seems to me that some don't get them who sohuld and others do get them who shouldn't. You can search the insolvency service website for information about bru's and bro's as wells as searching for examples of people who have got bru's and bro's. I beleive that only a very small percentage of bankruptcies result in a bru/bro being applied to the bankrupt. BRU/BRO's essentially cause the bankrupt to have BR restrictions of an undischarged bankrupt continuing to be applied AFTER discharge for between 2 and 15 years.
They include the restrictions set out in insolvency law which you are subject to when you are made bankrupt and which are normally lifted when you are discharged from bankruptcy. These restrictions include:
• You must disclose your status to a credit provider if you wish to get credit of more than £500.
• You must disclose to those you wish to do business with the name (or trading style) under which you were made bankrupt.
• You may not act as the director of a company or take part in its promotion, formation or management unless you get the court’s permission to do so. (You can apply to the High Court for this.)
• You may not act as an insolvency practitioner, or as receiver or manager of the property of a company on behalf of debenture holders.
There are a variety of other restrictions which are not set out in insolvency law; these include not being able to act as a local councillor.
As you can see getting a BRO/BRU does not effect the majority of people who may get.
what is a bru/bro
Posted - 15 December 2008 : 12:39:50
