Learn about Bankruptcy

What is a Bankruptcy Restriction Order?

A Bankruptcy Restriction Order can be imposed upon you if the Official Receiver thinks you have been dishonest about your assets - either before or during your bankruptcy, or if they feel that general neglect has contributed to your need to declare bankruptcy.

Reasons for a Restriction Order

• Gambling or unreasonable spending.
• You took on debts in the knowledge that you wouldn't be able to repay them.
• You entered in a "Transaction at an Undervalue". This means that you tried to give away or sell your assets to family and friends at a very low price in order to protect them from the Official Receiver. If this happens, the sale of the assets can be reversed through court proceedings so that they can be re-sold at a genuine price.
• Lack of cooperation with the Official Receiver
• Making debt repayments to some creditors while ignoring others. For example, you are not allowed to repay debts to family or friends while ignoring other creditors.

A Bankruptcy Restriction Order can last between 2 and 15 years.