Two Sole Traders have just been slapped with BRO’s related to Bounce Back Loan wrongdoing, both of them as you will see have been given 11-year Bankruptcy Restrictions Orders.
11 Year BRO London
On 4 January 2021, Mohammed Abdul Halim obtained a £50,000 Bounce Back Loan (‘BBL’) to which he was not fully entitled and did not fully use the BBL obtained for the economic benefit of the business. He filed his own petition with liabilities of £69,337.
11 Year BRO Bradford
In June 2020 Mr Hassan Ellahi applied for and obtained a £47,500 Bounce Back Loan (“BBL”) to which he was not fully entitled and did not use the BBL obtained fully for the economic benefit of the business.
BRO and BRU restrictions
BRO and BRU restrictions include the rules you have to keep to when you are made bankrupt and other extra rules. For example, you must not:
- Act as a director of a company, or form, manage or promote a company, without permission from the court
- Carry on business under a different name without telling people you do business with the name (or trading style) in which you were made bankrupt
- Try to borrow more than £500 without saying you are subject to restrictions
- Be a trustee of a charity
- be a trustee of many pension schemes
- Work in various posts in education such as being a school governor
- Work in various posts, or enter into certain contracts, in the health industry
- Hold various posts in some public authorities, or in similar organisations
There are many other restrictions; a more detailed list of restrictions can be found on GOV.UK by searching the document Additional effects of a bankruptcy restrictions order or undertaking.
To check whether a BRO/BRU stops you being elected to, or remaining in, a particular office or position, you should read our list and also seek guidance from the appointing or authorising body.
In some cases you may be able to carry out these roles with permission from the relevant authority. The Insolvency Service’s Enquiry Line may also be able to check, but if you are uncertain, get legal advice.
