BRO...scared

CoffeeBean_2

Had a letter in the post about consideration for an application for a Bankruptcy Restrictions Order.
Dont know what to think and why I have this. I have not been dishonest about anything. I feel sick as it sounds so scary.
I know I cant do anything until i can speak to them on the phone tomorrow when they are open but just not sure what its all about. They are asking for details of advice I had.
anyone been through this?

lilybankrupt

Urrggghhh why do letters like that always arrive when offices are closed, leaving you stressed all weekend?

A BRO is considered if you are in some way 'to blame' for your bankruptcy - so gambling, or really excessive spending in the run up to going bankrupt (I guess something like going on a luxury cruise on credit when you were already unable to pay your debts each month then going BR soon after).

I think there are other things too, like deliberately paying one creditor over another or failing to maintain business records such as VAT.

Have they given no hint as to what the BRO is for?

If you agree to the 'wrongdoing' by the way, I think you get a BRU not a BRO (undertaking not order) which is a slightly shorter time.

If you get a BRO / BRU you will normally still be discharged after a year, but the restrictions of bankruptcy will last for as long as the BRO / BRU. This can be up to 15 years but I think that's only for really serious cases - gambling for example seems to result in around 5 years.

longtermplanner

hi Coffeebean,

I haven't read all your previous posts because they are mostly buried in the long, communal threads so they are difficult to find. But from what I could see you seem to have had quite a few conversations with the OR's office, which isn't unusual but certainly doesn't happen for everyone. What were they asking about? This might give some clue to why they are thinking of a BRO.

You were also unhappy about the level of IPA they wanted to set. Has this been resolved, if so how?

BROs normally result from one of the following:
- reckless behaviour before going bankrupt, typically gambling. This isn't going to happen if you took out one loan to repay another, almost everyone going bankrupt has done that!
- dishonest behaviour before going bankrupt. Again this isn't likely if you just exagerated your income a bit when applying for a credit card, it is more for a pattern of significant dishonesty.
- concealing information from the OR
- failure to co-operate with the OR.

CoffeeBean_2

Thankyou for the replies
I have no idea. They asked in the letter for information about where I took advice from.
I will be phoning them first thing.
The IPA was resolved as I had valid points and is a lesser figure I can manage.
I have cooperated fully and not concealed anything, not gambled or been reckless. I have consolidated debt and had my head in the sand alot and also sufferred alot of MH which I still am.
not long till they open so hopefully I can get some more details.
Thanks

CoffeeBean_2

i just spoke to them and it seems to be money spent on credit card after i took advice from an insolvency solicitor through work. i had my car serviced and old tyres replaced. solicitors fees from their advice which in hindsight i should have done it all myself. but it was daunting and i took advice. i can explain it all and have been honest however am so worried and wish id never seen a solicitor.

lilybankrupt

Blimey, that seems pretty harsh to get a BRU for that? It's not exactly reckless spending...

CoffeeBean_2

thats what i thought.
I am scripting my email response to them now and hope it will go someway to assist and sort this out

CoffeeBean_2

email sent documenting all my advice etc and I have been advised I might not hear anything for a couple of weeks......
what is frustrating is that months ago the OR asked my about purchases after my advice which I discussed with her and it was never raised as a concern.

GazHatesBanks

CoffeeBean wrote: »

i just spoke to them and it seems to be money spent on credit card after i took advice from an insolvency solicitor through work.

My guess is that they have taken exception to you borrowing more money AFTER being advised by a professional service that you are insolvent and should file for bankruptcy.

They presumably see this as irresponsible as you would have known that you would not be able to pay back the debt.

CoffeeBean_2

I guess I have been niaive with this all but have not bee dishonest in any way and certainly not intended to be so I will just sit it out and see what happens.
Thanks for the posts.

georgiasmum

Best wishes coffee bean. It is galling when you read about ponzi schemers defrauding people, multinational corps and celebs defrauding HMRC etc etc and ordinary people seem to feel the full weight of the law and it's sanctions!

I am sure you (and I included) never borrowed money thinking years later I'd like to try out BR legislation!! Good luck.