Glossary · UK
What is Bankruptcy Restrictions Order (BRO)?
A court order extending the restrictions of bankruptcy for 2-15 years beyond the normal 12-month discharge, imposed where the Official Receiver finds evidence of dishonest or blameworthy conduct.
Full Definition
A Bankruptcy Restrictions Order (BRO) extends the restrictions that normally apply during bankruptcy in England, Wales and Northern Ireland for a further period of 2 to 15 years after the point a bankrupt would otherwise be automatically discharged (usually 12 months after the bankruptcy order). It is applied for by the Official Receiver or trustee in bankruptcy, and granted by a court, where there is evidence of blameworthy conduct -- such as trading while knowingly insolvent, hiding or disposing of assets, providing false information, gambling or excessive spending that contributed to the bankruptcy, or failing to keep proper business records. A Bankruptcy Restrictions Undertaking (BRU) is a voluntary alternative agreed without a full court hearing, with the same practical effect. While a BRO or BRU is in force, restrictions that would otherwise have ended at discharge continue to apply -- for example needing court permission to act as a company director, or being unable to obtain credit above a set amount without disclosing the restriction.