Bankruptcy Restriction Undertaking (BRU)

Hi youngbuck

youngbuck2 wrote: »

1. Will I still be discharged in 12 months time as usual or will my 'discharge' by delayed by the BRU?


The BRU doesn't affect your discharge date. This would only be delayed if you failed to cooperate in some way during the bankruptcy itself.

2. Will this BRU show on my credit file alongside my bankruptcy and will it further damage my credit rating in future on top of the bankruptcy?


BRUs are not recorded on your credit file - just the bankruptcy itself.

3. If my discharge is delayed due to a BRU, can I still be given an IPA (currently I don't pay one and don't expect to due to part-time working) because of the length of the BRU?


See answer #1.

4. Any other information I should know about a BRU?


You may find it useful to look at a few examples of recent BRUs from the register. Obviously these won't compare perfectly with your own circumstances but they may give you a general idea of what to expect:

https://www.insolvencydirect.bis.gov.uk/IESdatabase/viewbrobrusummary-new.asp

Dennis
@natdebtline

mwarby wrote: »

I do wonder though, being public information, whether some lenders would check this ?

Fair point mwarby and there's nothing to stop them doing so, I guess. In practice, though, the bankruptcy in itself will be the make or break issue in any subsequent credit application.


Dennis
@natdebtline

youngbuck2 wrote: »

I'm sure within a few weeks (or perhaps after Tuesday) the OR will inform me whether they are looking at a BRU. If so, I'll ask about it being mentioned on a credit report.

In my opinion, and from what I have read, the BRU only increases the initial bankruptcy restrictions, mainly not becoming a company director or working in insolvency - I think it would be unreasonable to place a restriction on someone for 15 years that they are unable to buy their own house, 14 years after they were discharged, but who knows that may be the case.

A lot of BRUs aren't decided until later on in the bankruptcy - they almost certainly will consider it - they have no choice if you've mentioned gambling. However don't expect to hear anything concrete in relation to a BRU/BRO until at least 6 months in.

I was told that it's a possibility by the OR (which I expected) and asked if I want to add any notes to my file for them to consider when deciding on any BRU.

I still haven't heard anything, but if they want to give me one I'm expecting it will be after the 9th month. There is no point awarding someone a BRO/BRU in the first few months of bankruptcy - as it expires X months from issue - therefore it would effectively be overlapping with your standard bankruptcy restrictions.

Also the OR needs to provide evidence to the court if it goes that far (in that you reject the BRU) - they can't do this until they have investigated your case. In your BRU letter you will be given some idea as to exactly why they want to give you a BRU and what term they think. You can effectively try to negotiate this with the OR if you think it is too harsh.

Obviously the ultimate negotiation is taking it to court as a BRO, but unless you genuinely feel the OR has been unreasonable (i.e. you're being a much harsher term than others in similar situations) you'll be smacked with at least a few extra years if the court award it.

In your situation I'd be fairly confident you'll get less than 5 years based on what you've told us, but you really can't worry about it, especially not this early.

I dread every letter that comes through now as my discharge edges closer. The sooner discharge comes the better, as it has to be pretty exceptional for the court to allow applications after 1 year (since the IS have had a year to make their minds up) - that will finally provide some closure (or closure if one is awarded, I suppose :rotfl: )

As for being 'unreasonable' RE: 15 years. I'd imagine all rulings over say 12 years will go to court - ultimately the bankrupt has very little to lose by arguing it (what's an extra 3 years as a BRO if you're going to sign for 12 anyway). As you say, there'd have to be some serious fraud for anywhere near 15 years - in which case, it is entirely reasonable that someone has credit problems for the best part of an extra 15 years.

Given that you'd struggle to buy a house for the first 2 years after discharge anyway (and for the first 3 or 4 will need a hefty deposit) due to the BR marker on your report, any BRO of less than 5 years effectively doesn't put you in much worse a position (unless you want to be a director etc, and even then you can apply to the court (just as you can if you want to before discharge)).