Post-bankruptcy & BRU restrictions

Sonic101

I do not understand that people complete statement of accounts when going bankrupt and put aside money for going out, holidays and clothes purchase. So the creditor suffers a pecuniary loss and you continue to have a nice lifestyle. There is no Moral Hazard here, no suffering or hardship so how will you learn?

I thought part of the idea of bankruptcy is to give someone a fresh start?  Chances are that the person has already experienced ‘hardship’ - for example,  businesses failed due to COVID, or single parent broken up with a partner and stuck with a mountain debts.

We’re talking a few quid a month here for the occasional pint, maybe the odd  trip to the seaside, and replacing worn-out clothing - not Caribbean holidays and spending sprees in Harrods.