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i England, Wales and Northern Ireland only

How bankruptcy affects me

Restrictions during bankruptcy

There are rules about what you can and cannot do when you go bankrupt. These are called ‘restrictions’.

The rules around debt relief orders (DRO) have changed. These changes could benefit those considering an insolvency solution like bankruptcy. Please take a look at the changes, as for some people a DRO will be a cheaper alternative to full bankruptcy.

What are bankruptcy restrictions?

Restrictions during bankruptcy include:


  • You cannot borrow more than £500 without telling the lender that you are bankrupt
  • You cannot be the director of a limited company without court permission
  • You cannot play a part in running a company without court permission
  • You cannot buy a house under the ‘right to buy’ scheme
  • You cannot use a different business name if you are self-employed
  • Unless you tell everyone you do business with about the bankruptcy
  • You are barred from some jobs, like:
  • Charity trustee
  • Insolvency practitioner
  • Registrar
  • Consumer credit licence holder
  • Any power of attorney you have for another person is cancelled
  • You must cooperate with the official receiver (OR)
  • You must give the OR the documents and information they ask for
  • People living in Northern Ireland cannot travel across any borders without permission

How long do bankruptcy restrictions last?

Restrictions last for the 12 months of your bankruptcy. Until you are discharged.

The OR can extend your restrictions if you:


  • Act irresponsibly or
  • Act dishonestly

This is called a bankruptcy restriction undertaking or order. It can last up to 15 years.

For example, this might happen if you:


  • Commit fraud
  • Try to hide assets
  • Run up gambling debts

What happens if you break bankruptcy restrictions?

The OR will investigate if they think you are breaking restrictions.


  • They may need to interview you
  • They may need to get more information

They can ask the court to suspend your discharge from bankruptcy if you do not comply.

Breaking these restrictions can be a criminal offence, and could lead to:


  • A fine Imprisonment in extreme cases
  • A bankruptcy restriction undertaking order
  • This makes the restrictions last longer

Get free bankruptcy advice

Use our online debt advice tool to find out if bankruptcy is right for you.