The Insolvency Service is clamping down on individuals who have become bankrupt as a result of ‘gambling, speculation or unnecessary extravagance’, says Moore Stephens, the accountancy firm.
The number of Bankruptcy Restriction Orders filed against individuals for ‘gambling, speculation or unnecessary extravagance’ has increased three years in a row. The number has increased 150 per cent in the last two years alone, up from 16 in 2014/15 to 40 in 2016/17.
Moore Stephens says Bankruptcy Restriction Orders (BROs) can have a dramatic impact on individuals. BROs limit an individual’s access to credit and can prevent them from becoming a director of a company for up to 15 years, effectively ruling them out from leading future business ventures for as long as the order lasts.
Moore Stephens says this clamp down comes as the number of people who regularly gamble in the UK increases.
A report from the Gambling Commission earlier this year revealed that 48 per cent of people gambled at least once a month in 2016, up from 45 per cent in 2015.
This increase has been driven by the growth of the online gambling sector which has made gambling more accessible.