Extended bankruptcy for Solihull woman who failed to disclose assets
15 Sep 2016 11:43 AM
Lynn J Collins has given a bankruptcy restrictions undertaking for seven years for failing to disclose and deliver up assets to the trustee, as required to by law.
The ban follows an investigation by the Insolvency Service.
The undertaking, given on 9 August 2016 by Mrs Collins, means that she will be bound for 7 years, by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – until August 2023. In addition, she cannot manage or control a company during this period without leave of the court.
Mrs Collins was declared bankrupt on a petition presented by HM Revenue and Customs on 18 April 2012 and was discharged from bankruptcy on 18 April 2013. She had liabilities of £33,055.
Whilst dealing with the administration of Mrs Collins’ bankruptcy, the Official Receiver and her Trustee became aware that Mrs Collins had failed to disclose assets with a value of £27,908 held at the time of the bankruptcy. Further enquiries were made and it was discovered that Mrs Collins had realised the assets and spent £1,618 of the money received. When enquiries were made of her regarding the money, Mrs Collins gave a false statement about where the money had come from in an attempt to put it out of the reach of creditors.
As a result of documentation given to Mrs Collins and which she acknowledged receipt of, following her bankruptcy, she ought to have known that she had a duty to reveal the assets to the Official Receiver and her Trustee.
Commenting on the case, Kevin Read of the Insolvency Service’s Official Receiver’s office said:
The Insolvency Service always looks very closely at individuals who disregard their duties and responsibilities whilst bankrupt and takes action where wrongdoing is uncovered.
Notes to Editors
Mrs Collins is of Solihull and her date of birth is 14 August 1961.
If the Official Receiver considers that the conduct of a bankrupt has been dishonest or blameworthy in some other way, he (or she) will report the facts to court and ask for a Bankruptcy Restrictions Order (BRO) to be made. The court will consider this report and any other evidence put before it, and will decide whether it should make a BRO. If it does, the bankrupt will be subject to certain restrictions for the period stated in the order. This can be from 2 to 15 years.
The bankrupt may instead agree to a Bankruptcy Restrictions Undertaking (BRU) which has the same effect as an order, but will mean that the matter does not go to court.
These are restrictions set out in insolvency law that the bankrupt is subject to until they are discharged from bankruptcy – normally 12 months and include that bankrupts:
- must disclose their status to a credit provider if they wish to get credit of more than £500
- who carry on business in a different name from the name in which they were made bankrupt, they must disclose to those they wish to do business with the name (or trading style) under which they were made bankrupt
- may not act as the director of a company nor take part in its promotion, formation or management unless they have a court’s permission to do so
- may not act as an insolvency practitioner, or as the receiver or manager of the property of a company on behalf of debenture holders
Additionally, a person subject to a Bankruptcy Restrictions Order/Undertaking or a Debt Relief Restrictions Order/Undertaking, may not be a Member of Parliament in England or Wales.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.