Personal Restrictions in Bankruptcy

An undischarged bankrupt will find they are under financial restrictions and depending upon profession, may lose their job.

An undischarged bankrupt is subject to the following restrictions:-

• You may not obtain credit of £500 or more in total, without disclosing your bankrupt status. This includes ordering goods on credit.
• If you are a sole trader, you may trade under a new trading name, but you must advise those you come into contact with in your business dealings of your bankruptcy status.
• Industry professional rules make it more or less impossible for a bankrupt to practice as a Solicitor or Accountant.
• You may not practice as an Insolvency Practitioner.
• You are not permitted to join the Police or Armed Forces while Bankrupt. There are implications for those in certain roles who become bankrupt whist already serving in the Police or Armed Forces.
• You are not allowed to act as a Charity Trustee unless you are a director of that charity and have the court's permission to continue your role.
• You may not be, or act as the director of a limited company, or be directly or indirectly involved in the formation, running and management of a limited company.

Becoming bankrupt is not a criminal offense, however breaching any of the above restrictions is, and may lead to criminal proceedings.

Your employer or any potential employee may be unwilling to employee someone in a role of responsibility involving finance or the handling of money.

Bankruptcy Restriction Orders (BRO)

If the Trustee considers you to be blameworthy, reckless or dishonest in your financial affairs and this contributed to your bankruptcy, a Bankruptcy Restriction Order can be made against you. This prolongs the above restrictions and adds further restrictions to your activities.