en-us http://backend.userland.com/rss Your Friends @ Myvesta.org.uk (stever@myvesta.org) myvestaukblog_archive.html stever@myvesta.org 115298517666065711 Extracts from the Myvesta UK Forum:

Question...

Hi there,

I have just received a letter from the OR telling me that the Secretary of State has directed the OR to apply to the court for a BRO to be filed against me (this was expected) or I can enter into a BRU (this I will probably do). The restriction will be for about 4-5 years.

I know all about the restrictions with regard to applying for credit or been a director of a company.

The question I ask is what about any money I inherit during the years that the BRO/BRU is in effect, also what about my earnings, at the moment I do not have enough disposable income to pay back my creditors but what happens if I get a new job with higher earning potential will I have to tell the OR.

Thanks

Didds

Answer...

Hi Didds,

When an individual is made Bankrupt they are subject to certain restrictions e.g. not being able to act as a director of a limited company.

The purpose of a BRO / BRU is effectively to protect the public from the future actions of a Bankrupt by retaining a number of those restrictions upon him/her. The Bankruptcy Restriction Order or Undertaking will specify what these restrictions are. Any breach of the conditions of a BRO / BRU is a criminal offence. These restrictions can continue after a Bankrupt has been discharged from Bankruptcy.

With regards to regards to income payments orders Section 310 of the Insolvency Act 1986 (as ammended) states that such an order can only be made before discharge of the bankrupt.

Therefore it appears that any increase in surplus income after your disharge will be unavailable to the Bankruptcy estate. The Rules relating to Inheritances, i.e. After Acquired Assets similarly only apply during the period of Bankruptcy and not the for the period of the BRO/BRU that continues after discharge, so again should this occur it appears you will retain the benefit of the windfall.

Hope that helps!
_________________
Best wishes

Dean

http://myvesta.org.uk