When someone goes bankrupt, an Official Receiver is appointed from the insolvency service to review the person going bankrupt’s finances. They will review their income and expenses, and also the accounts they are looking to discharge in the bankruptcy. Meaning no longer owe after being bankrupt.

While a person is bankrupt, which is 12 months, they are under certain restrictions:

These restrictions are for 12 months….unless a BRO or Bankruptcy Restriction Order is placed.

What Is a BRO And Why Are They Issued?

BRO’s are an order that in essence keeps you under the restrictions of bankruptcy for longer than 12 months. They can be issued to last a few years, and up to 15 years, depending on the offence for which they are issued.

As to how you can issued a BRO can be for a variety of reasons, one being not cooperating with the OR or Official Receiver handling your bankruptcy.

Another reason is if you hide or transfer assets prior to going bankrupt. This can be viewed a fraud, and is a very good reason to be issued a BRO.

For the majority of those going bankrupt, a BRO is not an issue, but you do need to be aware that your full cooperation in your bankruptcy is required.

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