Bankruptcy restrictions were introduced by legislation on 1 April 2008. The grounds for an Order are described in Section 56B of the Bankruptcy (Scotland) Act 1985, as amended (The Act).

The Act specifies that only The Accountant in Bankruptcy can apply for a Bankruptcy Restrictions Order (BRO) or agree a Bankruptcy Restrictions Undertaking (BRU). If the Trustee considers that there has been behaviour, after 1 April 2008, by the debtor that could be considered dishonest or blameworthy in some way, either before or during the bankruptcy, they may make a report to the AiB and request an investigation. The Investigation Application Form can be found at Appendix K of the Notes for Guidance.

The restrictions that can apply are those which are applied when a debtor is undischarged from their bankruptcy, such as how they can obtain credit and the ability to act as a Director or manage a business. These restrictions are recorded in the Act and legislation pertaining to a specific post or type of employment. The period over which the restrictions can apply may vary between 2 and 15 years, depending upon the severity of the misbehaviour.

A BRO is granted by a Sheriff following a Court application by AiB. The restrictions come into force on the date the Sheriff grants the Order and cease to have effect on the date specified in the Order.

AiB can request that an Interim BRO be imposed by a Sheriff if there is an identified need to protect the public before a full BRO application is heard in Court. A Sheriff can rule on an Interim BRO application without the need for a full Court hearing. Hence, a decision can be made on an Interim BRO before the BRO hearing is set. The restrictions that are imposed under an Interim BRO are the same as under a BRO. An Interim Order shall cease to have effect on the determination of the application by the Sheriff or on the acceptance of a BRU by AiB.

A BRU is an agreement between the debtor and AiB that they will comply with the restrictions without the matter being referred to a Sheriff. The same restrictions will be applied under a BRU as with a BRO. The restrictions come into force on the date AiB accepts the Undertaking and ceases to have effect on the date specified in the Undertaking.

The full list of current Bankruptcy Restriction Orders and Undertakings can be found in the statistics section of this website.

Further information regarding bankruptcy restrictions can be found in the AiB publication Bankruptcy Restrictions Guide.

Details of whether bankruptcy restrictions apply to a debtor can be ascertained by a search of the Register of Insolvencies.