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Friday, 07 May 2010 08:34

Will I Get A Restriction Order For Taking Out Credit Whilst Bankrupt?

Written by  Jon
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Question:



I went Bankrupt in march 1st 2010 Will i get a Bankrupcy Restratrion order made agast me

I Have just applyed for DLA If i get Accepted does the OR need to know as im still Bankrupt.

I Also got ICS of 45 per mouth for 10 mouths and a 380 college bill which i got after my Bankrupcy Date will i be in Trouble for this I cant afford the 45 a mouth or the college bill

Answer:



Whilst bankrupt you are obligated to report any financial changes to the Receiver in your bankruptcy, so what you are asking is a change and does need to be reported.

As for receiving DLA and being bankrupt, the bankruptcy should not effect this.

You are allowed access to up to £500 of credit without the Receiver's permission, however if you have taken out credit whilst bankrupt and know you could not afford to repay it, one may ask why you did this, and if it exceeds the amount allowed, then yes, you could receive a restriction order.

I cannot say for sure if you will receive a restriction order, but you may want to make the Receiver in your bankruptcy aware of the new debt and then it will be their decision as to what to do.

Thank you for letting me help you.

Jon

If you have a bankruptcy question you'd like to ask, just ask using this online form. All help is free.

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