Bankruptcy Restrictions Undertaking (BRU)
A bankruptcy restrictions undertaking has the effect of prolonging the restrictions of bankruptcy for between 2 and 15 years. It is the same as a bankruptcy restrictions order except:
- No application to the court is necessary
- The duration that the restrictions are in force may be shorter as you are accepting the allegations made against you.
For detailed information on the consequences please go to the bankruptcy restrictions order page.
How do I get a bankruptcy restrictions undertaking?
During the investigation of your affairs the Official Receiver may consider you to be blameworthy, reckless or culpable. As such, he/she may consider a bankruptcy restrictions order to be appropriate. To avoid the matter going to court you will be given the opportunity to accept the allegations against you and state your willingness to enter a bankruptcy restrictions undertaking.
Before submitting your papers to court you should know how bankruptcy will affect you. The bankruptcy restrictions undertaking is just one consequence of bankruptcy that can affect you for years to come.
How long is a bankruptcy restriction undertaking?
The actual length of the bankruptcy restriction undertaking will depend on your behaviour. If you are guilty of fraud or a criminal activity then you can expect the term of the undertaking to be 11 to 15 years. You may wish to visit the bankruptcy offences page in this instance. If you have just been negligent then you can expect less than 11 years. The length will depend on your circumstances.
What happens if I do not accept the undertaking?
A bankruptcy restrictions undertaking has the same effect as a bankruptcy restrictions order but without the need to go to court. If you do not accept the bankruptcy restrictions undertaking then the Official Receiver may proceed to apply to the court for an order. On the flip side if you do accept, the term that you are subjected to restrictions may be discounted.
How may the restrictions undertaking affect me?
A bankruptcy restrictions undertaking can affect you in a number of circumstances such as obtaining finance, applying for certain jobs, running a business and being a director to name just a few.
Can the undertaking be annulled or shortened?
Yes, upon application to the court the bankruptcy restriction undertaking may be annulled or shortened.
Where can I find out more about a bankruptcy restrictions undertaking?
