Those who have become bankrupt through excessive “gambling, speculation or unnecessary extravagance” are facing tougher penalties from the Insolvency Service, a report has revealed.
It found that the number of Bankruptcy Restriction Orders (BROs) filed against those irresponsible with their money jumped by 150 per cent in the last two years.
It says the rise is attributed to the boom in online gambling platforms. Figures from the Gambling Commission show that 48 per cent of people gambled at least once a month in 2016 – up from 45 per cent the previous year.
What is a BRO?
A BRO can prevent an individual from accessing credit and running a company as a director.
It is granted when it is proved to the Court that someone cannot pay their debt – a minimum of £750.
The application for the Order can be made by the individual or by a creditor owed money or by the Supervisor of a failed Individual Voluntary Arrangement.
It is possible to obtain an annulment (meaning in effect the bankruptcy order never happened at all) if all creditors are paid in full or if a proposal for an Individual Voluntary Arrangement is put in place.
Gibson Hewitt is happy to advise anyone in such a situation. We have a great deal of experience of rescuing people in such cases. Remember, the initial consultation is free.