A solvent insolvency
22 February 2017: We have recently accepted the appointment as Trustee in Bankruptcy of an individual who was declared bankrupt but who does in fact appear to have assets well in excess of their liabilities – essentially they are a solvent bankrupt, as strange as that sounds. This is an unusual scenario that has come about because the individual has buried their head in the sand for a variety of reasons and has not kept on top of their affairs. Had the individual attended to their affairs in a more timely manner, it is highly unlikely that the bankruptcy petition would have even been presented. Whilst it is still early days, we envisage that the end result in this case will be a successful application to Court for the annulment of the bankruptcy order on the basis that all of the bankruptcy debts, costs and expenses have been (or will be) paid in full.
It is very unusual for a person who has been declared bankrupt to have any influence over who is appointed as their Trustee in Bankruptcy and it can be somewhat of a lottery. In this case, we quickly identified that the individual will likely have a surplus coming back to them once matters have been attended to and we met with the individual at an early stage in order to ensure that they understood the position that they were in. Whilst we are acting on behalf of the creditors when appointed as Trustee in Bankruptcy, we always ensure that we act in the best interests of the bankrupt as far as we are able to. In this case, this is of particular importance as our actions are likely to have an influence on the amount of the surplus paid back to the bankrupt at the conclusion of the matter.
If you recognise that the above scenario of not attending to affairs is one that applies to you or one of your clients, please do not hesitate to contact a member of the BRI management team for some professional, impartial and no-obligation advice. We do not charge for initial meetings. Often, solutions can be found even when it might be considered to be too late.