Update from Adina-Leigh Collins, Solicitor, Litigation department
A bankrupt individual from Leamington Spa has been jailed for eight months after he failed to disclose a rental property to his trustees.
The individual was made bankrupt in August 2017, with debts of over £140,000, and in August 2019, he accepted a 10-year bankruptcy restriction undertaking (“BRU”).
Following investigations, he was found to have failed to disclose a rental property in Coventry that brought in £1,900 per month by way of rent, of which he was the sole owner.
Criminal proceedings were brought, and the bankrupt was sentenced by Warwick Crown Court after being charged with four counts of bankruptcy offences.
When a bankruptcy order has been made, the bankrupt must make their estate available to the Official Receiver/Trustee in bankruptcy and deliver up all documentation/records relating to their estate. There are several bankruptcy offences that a bankrupt can fall foul of if they fail to comply, for example, failure to disclose all property in the estate, failure to deliver up all documentation, making false statements, disposing of property etc. Bankruptcy offences can carry a maximum prison term of 7 years, and an unlimited fine. You can find out more here.
The Crown Court was satisfied that the bankrupt had breached his duties and committed various bankruptcy offences, which given that he was also subject to a lengthy BRU, led the Judge to comment that the bankrupt was a “profoundly flawed and dishonest man…who showed flagrant disregard for the law and authorities”.
Accordingly, the Court handed down an eight-month sentence for all four bankruptcy offences and the bankrupt is required to serve them concurrently. For more information, click here.
If you require legal advice on the bankruptcy process or to discuss a Litigation matter further, please feel free to email me or contact the team on 020 8308 3610.