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The Accountant in Bankruptcy confirms the number of bankruptcy restriction orders have doubled from six for the whole of 2009 to twelve for the year to date.
Normally a bankrupt can be discharged from bankruptcy after one year of being declared insolvent. Rules exist allowing the Accountant in Bankruptcy (AiB) to apply for a bankruptcy restriction order (BRO) against the bankrupt if it is felt that their behaviour has been dishonest in some way or there has been ‘unfit’ conduct.
Restrictions can apply for between two to fifteen years, continuing after the bankrupt has been discharged. It is also possible that BRO can arise due to behaviour either before or during the bankruptcy. Examples of behaviour that could lead to a BRO being made include incurring debts knowing that there was no reasonable chance of repaying them, giving away assets or selling them at less than their value and deliberately paying off some creditors in preference to others. A BRO means the bankrupt can not apply for credit of more than £500 without telling the lender they are subject to the order amongst other restrictions.
Earlier this year, after a Hearing at Dundee Sheriff Court, an application by AiB was granted issuing a four year BRO to a bankrupt. The bankrupt had taken out five contracts with different mobile phone companies within four days of each other, with no intention of making any payments towards them. This had resulted in an increased debt in excess of £4000.
For further information about BRO statistics in Scotland visit the AiB website.
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Normally a bankrupt can be discharged from bankruptcy after one year of being declared insolvent. Rules exist allowing the Accountant in Bankruptcy (AiB) to apply for a bankruptcy restriction order (BRO) against the bankrupt if it is felt that their behaviour has been dishonest in some way or there has been ‘unfit’ conduct.
Restrictions can apply for between two to fifteen years, continuing after the bankrupt has been discharged. It is also possible that BRO can arise due to behaviour either before or during the bankruptcy. Examples of behaviour that could lead to a BRO being made include incurring debts knowing that there was no reasonable chance of repaying them, giving away assets or selling them at less than their value and deliberately paying off some creditors in preference to others. A BRO means the bankrupt can not apply for credit of more than £500 without telling the lender they are subject to the order amongst other restrictions.
Earlier this year, after a Hearing at Dundee Sheriff Court, an application by AiB was granted issuing a four year BRO to a bankrupt. The bankrupt had taken out five contracts with different mobile phone companies within four days of each other, with no intention of making any payments towards them. This had resulted in an increased debt in excess of £4000.
For further information about BRO statistics in Scotland visit the AiB website.
More...
