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The Insolvency Service (IS) have published a new guidance document on the Debt Relief Restrictions Orders (DRRO). The procedure is of course similar to the big brother bankruptcy BRO regime, but tailored to the bankruptcy-lite DRO regime. Find the new document here. This is the kind of conduct that might land a debtor with a DRRO:
• incurring debts that you knew you had no reasonable chance of repaying;
• giving away assets or selling them at less than their value;
• deliberately paying off some creditors in preference to others;
• gambling or making rash speculations or being unreasonably extravagant;
• failing to keep or produce records that would explain a loss of money or property;
• fraud, or fraudulent breach of trust;
• failing to co-operate with the official receiver;
• causing your debts to increase by neglecting your business affairs;
• failing to supply goods or services that have been paid for;
• carrying on a business when you knew or ought to have known you could not pay your debts.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...