A bankruptcy restrictions undertaking can prolong the bankruptcy restrictions for between 2 and 15 years. It is the same as a bankruptcy restrictions order except:

• No application to the court is necessary
• The duration that the restrictions are in force may be shorter as you accept the allegations against you.

Please go to the bankruptcy restrictions order page for detailed information on the consequences.

How do I get a bankruptcy restrictions undertaking?

During the investigation of your affairs, the Official Receiver may consider you to be blameworthy, reckless or culpable. As such, they may feel that a bankruptcy restrictions order is appropriate. To avoid going to court, you can accept the allegations against you and state your willingness to enter a bankruptcy restriction undertaking.

Before submitting your papers to court, you should know how bankruptcy will affect you. The bankruptcy restrictions undertaking is just one consequence of bankruptcy that can affect you for years.

How long is a bankruptcy restriction undertaking?

The actual length of the bankruptcy restriction undertaking will depend on your behaviour. If you are guilty of fraud or criminal activity, you can expect the term of the undertaking to be 11 to 15 years. You may wish to visit the bankruptcy offences page in this instance. You can expect less than 11 years if you have just been negligent. The length will depend on your circumstances.

What happens if I do not accept the undertaking?

A bankruptcy restrictions undertaking has the same effect as a bankruptcy restrictions order but without the need to go to court. If you do not accept the bankruptcy restrictions, the Official Receiver may proceed to apply to the court for an order. On the flip side, if you take the terms, you are subjected to restrictions that may be discounted.

How may the restrictions undertake to affect me?

A bankruptcy restrictions undertaking can affect you in several circumstances, such as obtaining finance, applying for specific jobs, running a business and being a director, to name just a few.

Can the undertaking be annulled or shortened?

Upon application to the court, the bankruptcy restriction undertaking may be annulled or shortened.