Further restrictions for man who breached terms of personal insolvency
A man has received further penalties after breaching the terms of his own bankruptcy by transferring hundreds of thousands of pounds worth of property to family members.
The self-employed taxi driver and former councillor became bankrupt in November 2017, having presented his own petition before a court.
The man was made aware of the restrictions he was entering into on making of the bankruptcy order, but despite this, the Insolvency Service was called in after it emerged that he had made a series of unlawful payments to family members.
It was found that he had transferred some £600,000 worth of land he owned in India to family members, as well as gifting a further £86,410 from the sale of his property in Leicester to the detriment of creditors.
After communicating with trustees who were appointed to his bankruptcy estate, Insolvency Investigators could see that creditors received no benefit from the property transfers despite having a valid claim.
The report shows that the property transfers took place within two months of an order for payment was made against the man in October 2017. This payment was connected to a business-related claim made against him.
As a result of his actions, the man’s bankruptcy restrictions were extended to nine years, increasing the time he is not allowed to carry out certain activities such as borrowing money over £500 (without disclosing his bankruptcy status).
Commenting on the investigation, Gerard O’Hare, Official Receiver for the Insolvency Service, said: “[The man] on two separate occasions, whilst insolvent, cynically disposed of assets to his relatives and to the detriment of his creditors generally.
“This nine-year restriction should act as a deterrent to him and others from acting in the same way.”