What is a Bankruptcy Restriction Order? (BRO)

Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness of the case. Restrictions can cover your personal, financial, and professional life, and have a far-reaching effect in many instances.

Why would a Bankruptcy Restrictions Order be granted?

A BRO may be made for failing to cooperate with the trustee at any stage - not supplying the information required for sequestration, for example, or misleading the trustee on the level of debt you owe.

Other examples can include:

• Selling assets at below their market value
• Incurring additional debt when you know that it cannot be repaid
• Fraudulent activity
• Giving preference to certain creditors over others
• Gambling
• Failing to keep proper financial records

How to manage secured loans when in a trust deed?

Even though you will need to continue to service any secured borrowing, the good news is that your contractual monthly payments on these secured loans will be taken into account by the trustee when drawing up your proposed agreement. This means that the amount you have left over to pay into your trust deed will be reduced to reflect these secured loan payments. With this in mind, however, in order to be eligible for a trust deed you must have some money with which to pay the creditors included in the arrangement. If you do not have any money left over after paying your necessary bills and secured debts, then you will not be able to enter into a trust deed and instead you will have to consider an alternative debt solution such as sequestration.

How Scotland Debt Solutions can help

Knowing which debt solution is the right one for you and your circumstances can be difficult. It is therefore vital that you seek expert help and advice from a professional to ensure you make the best decision possible. Scotland Debt Solutions have been helping Scots manage their debt problems for almost 30 years and are perfectly placed to help you too. 

By taking out a trust deed with Scotland Debt Solutions, we can help stop the phone calls and letters from those you owe money to. We will take responsibility for liaising with your creditors and letting them you that you have entered into a Trust Deed, and that all further communication must go through us.  Call our advisers today on 0800 063 9250 to arrange an appointment with our debt experts.