Fuss over BRO?

Dodger61

Hi Guys,
Having read various threads on this forum, there seems to of been a few comments on BRO and its ffects.
Is it me, or is it a fuss over nothing? I apologise in advance, if I have got something wrong, but it seems to me that once you have been BR, you are discharged normally within a year, and if BRO restrictions apply, the only thing to worry about is:
You must disclose you have been BR if you want credit of £500 or more
( no thanks, had enough of credit )
You must disclose your old trading name if you want to enter into business
( Doesnt apply to a lot of people here, ie. individuals )
You must not act as a Director of a Company
( No plans too )
You must not act as an insolvency practitioner
( phew )

And, er, thats it. Tell me I am missing something Guys, seems a lot of these things will not apply to the majority of people here.
Thanks

k2nga

You are right but would you really want to have this over you for up to 15 years?

Dodger61

Based on these restrictions, would it be that a hardship? Think I could get by. Everyone is different though.

k2nga

Although i think it will change in the future i think it would be hard enough to get a mortgage after the normal 6 years that BR will show on your credit file let alone 15 years.

This would mean that if renting you might have to rent for the rest of your life which worries mean would mean real hardship in retirement. Certainly in you are in council housing you would not really care but its very hard to get council housing these days as i know facing eviction myself.

skylight

Those are only the basic restrictions, but I agree that actually a BRU is nothing to worry about for some.

However, we (a collective board we), have found ourselves BR due to unexpected circumstances - we just did not know what was round the corner. Okay, this was a bad thing, but what if the good things start to appear around the corner? Those good things that a BRU would seriously bu**er up??

On the face of it, a BRU may not mean a lot to an individual right now. But life is full of unexpected stuff ("They never said life would be great, just eventful") and your circumstances could be greatly changed. A BRU is not the end of the world, but its better to avoid one if possible.

GettingHopeful

Yes, I think the mortgage question is the most difficult situation. What about if a spouse (heaven forbid, but getting long in the tooth here) who had the house and mortgage in their name were to die first before it was paid off? Insurance too expensive.

No indication of a BRO, so far, thankfully.

Yes, totally agree Skylight, supposing a BR makes a massive success of something (and many do!) and normally a company formation would be the natural step? What about if you are angry with the school your children are at and want to change things, you can't get on the board of governors to get things done?

Rubie-blu

How do they decide if bro applies?

fiveyearplan

I thought that board of governors thing was scrapped. Even if its not, there are plenty of ways to get your views known and listened to in a school without being a parent governor.

Obviously its best to avoid a bro and not do anything now that would knowingly lead to one but if you already think you have so be it, not much you can do now but live with it and get on enjoying your life and not look at it as a jail sentence.

Rubie-blu

Is a BRO the same as taking 50%+ of your surplus?

philnicandamy

Rubie-blu wrote: »

Is a BRO the same as taking 50%+ of your surplus?

Nope different thing alltogether


http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch13-24/Chapter13/part12/part_12.htm

Rubie-blu

What is a BRO then? and what is the 50%+ thing? and how do they establish which one applies to you?