Philip Shiner from Birmingham, has given a 6 year bankruptcy restriction undertaking to the Secretary of State.
Mr Shiner thought he would be able to gift his assets to family members and declare himself bankrupt saying that he had no money to pay his creditors after the closure of his law firm, Public Interest Lawyers Limited.
However the Official Receiver was able to identify the transactions, which included transferring ownership of his house and some belongings and selling a commercial property, into a family trust.
The official Receiver has been able to claw back some of the cash and is in the process of selling the house.
This case serves as a reminder that there is no hiding assets before bankruptcy.
A bankruptcy restriction order means that the debtor;
- Must disclose their status to a credit provider if they wish to get credit of more than £500
- If they wish to carry on doing business in a different name to which they were made bankrupt, they must declare to those they wish to do business with the name of the original business.
- May not act as a 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 holder.
- May not be a Member of Parliament in England or Wales.
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.