undervalue and making preferences and trading while
insolvent.
Effects of a BRO
The effects are much the same as an extension of the
period for automatic discharge so that for the currency
of a BRO (which can be any period between two years
and 15 years) the person subject to the BRO cannot,
e.g.:
■act as a company director;
■obtain credit above a specified limit without disclos-
ing the existence of the BRO;
■trade in a name other than the name under which he
or she was made bankrupt.
Interim BRO
Where the bankrupt is likely to obtain an automatic dis-
charge before the hearing of an application for a BRO, the
court may make an interim BRO pending a full hearing
of the application.Bankruptcy restriction undertakings
(BRU)Under this procedure a bankrupt can agree the terms
of a bankruptcy restriction undertaking with the Official
Receiver after offering the Official Receiver such an under-
taking. The Official Receiver is not obliged to accept the
undertaking in the terms offered. The rules and duration
of a BRU are as for those of a BRO.Part 2Business organisations
110
Figure 5.1The personal insolvency of Fred Smith: an outline of the main Insolvency Act 1986 procedures