Insolvency Service cracks down on debtors
5 February 2018: The Insolvency Service is clamping down on individuals who are disposing their assets irresponsibly rather than repaying debts. Bankruptcy restriction orders (BROs) issued by the Insolvency Service has increased in 2017 to crack down on the ‘dissipation of assets’.
‘Dissipation of assets’ is when an individual is considered to have unreasonably disposed of assets without regard to repaying their creditors, such as banks and credit card companies. BRO’s can be very damaging to an individual’s ability to borrow and their future business prospects. If issued with a BRO, an individual’s access to credit can be limited and they can be prevented from becoming a director of a company for up to 15 years. Debtors issued with a BRO must know exactly what the restrictions they face mean; breaking a BRO could result in heavy fines or a custodial sentence.
Should you or your clients require advice in this respect or any other insolvency matter, please contact any of BRI’s management team who will be more than happy to help.