Bankrupt gets 13 year bankruptcy restriction undertaking….

Gurpreet Singh Chadda was declared bankrupt following a petition presented by the Financial Conduct Authority (FCA).

Subsequent investigations by the FCA into Mr Chadda’s conduct uncovered a host of misdemeanors including dishonesty and providing misleading information to his clients.

Mr Chadda was involved in the ‘sale and rent back (SRB)’ business, where property owners sell their property and enter into an agreement to rent it back.  Mr Chadda identified such property owners in financial difficulty and persuaded them to enter into an SRB.

The FCA found however, that Mr Chadda was benefitting hugely from these agreements and in only 7 agreements the FCA believed that he received almost £700k.

Mr Chadda was fined £945k by the FCA and in addition gave a bankruptcy restriction undertaking of 13 years.  An undertaking has the same effect as an order but there is no court order.

Just as a reminder, a bankruptcy restriction states that bankrupts :


  • Must disclose their status to credit providers if they wish to get credit of more that £500
  • Must not act as the director of a company or take part in its promotion, formation or management unless they have a courts permission to do so
  • Must not act as an insolvency practitioner or receiver of a property of a company on behalf of debenture holders
  • Must not be a Member of Parliament in England and Wales


The above list is not exhaustive but these are the main factors.

It is important for anybody facing financial difficulties, whether personally, directors of limited companies or partnerships, to seek advice from a licensed insolvency practitioner as soon as possible.

For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.

Redman Nichols Butler has had a York office for over six years now. John Butler specialises in advising SME businesses in York and North Yorkshire. The Redman Nichols Butler York office address is Westminster Business Centre, Nether Poppleton, York, YO26 6RB.

Redman Nichols Butler has had a Driffield office for 19 years now.  Andrew Nichols specialises in advising SME businesses in East Yorkshire. The Redman Nichols Butler Driffield office address is Maclaren House, Skerne Road, Driffield, East Yorkshire, YO25 6PN.

Redman Nichols Butler has had a Scunthorpe office for nearly 4 years now.  Mark Neumegen specialises in advising SME businesses in Scunthorpe, Grimsby and all over North East Lincolnshire. The Redman Nichols Butler Scunthorpe office address is Suite 8b, Normanby Gateway, Lysaghts Way, Scunthorpe, DN15 9YG.

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