Following the Enterprise Act 2002, the time under
which a person remained bankrupt dropped from three years to one year.
Hence from 1st April 2004 a person could ordinarily expect to be
automatically discharged from bankruptcy after 12 months.
However alongside this there were new rules which
gave the court the power to make a bankruptcy restriction order if the
Official Receiver believes that the behaviour of the bankrupt has been
dishonest or the conduct has been “unfit”.
The bankruptcy restriction order can last for
anything between 2 and 15 years and will appear on the public register.
The register is searchable and will include reasons why the order was
made.
Unfit conduct can include:
Gambling;
Taking out credit which you realised you couldn’t
pay;
Giving away assets so that they couldn’t be
claimed in the bankruptcy;
Failing to co-operate with the Official Receiver;
Concealing property from the Official Receiver;
Failing to keep proper accounts for the business
in the two years before bankruptcy;
Trading while it was known that the debts couldn’t
be repaid;
Paying some creditors over and above assets:
The bankruptcy restriction order will have the
following affect:
It will mean that you would not be able to apply
for credit over £500 without advising the lender;
You could not be an MP;
You cannot be a company director or take part in
the management of a business;
If you think that you may be in danger of being
subject to a bankruptcy restriction order it would be advisable to take
professional advice.
Call us on 0808 160 5577 or utilise the contact us
forms.
Article Source: http://
www.articlesbase.com/debt-consolidation-articles/what-is-a-
bankruptcy-restriction-order-1766237.html About the Author
Contact Steve Thatcher of Help With Debt (UK)
Limited a total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com For personal
contact email sthatcher@helpwithdebtuk.com
If you have any debt problem whatsover either personal or corporate
make Steve your first call all advice is free. Finally if in the UK and
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