More solvent insolvencies
17 April 2018: Last year, we reported on a case where we had been appointed as Trustee in Bankruptcy of an individual who was declared bankrupt but who did, in fact, have a surplus of assets over liabilities (see https://www.briuk.co.uk/a-solvent-insolvency/). So far in 2018 we have been appointed as Trustee in Bankruptcy in two new, separate cases whereby the debtor in each case also appears to be in a position to discharge all bankruptcy debts, costs and expenses in full with a surplus of assets in their estates.
The reasons for these people being declared bankrupt vary but in each case bankrupcy might have been avoided by the debtor engaging with the key creditors and not burying their head in the sand assuming that the issues will resolve themselves. In these cases, our role will be to ensure that creditors are paid in full in a timely and efficient fashion bearing in mind that there is likely to be a surplus back to the debtors once their affairs are concluded.
Solvent bankrupts are a rare thing for obvious reasons so to have been appointed in three such matters in twelve months is highly unusual.
Should you or one of your clients require practical and independent advice on any financial issues in a personal or corporate scenario, please do not hesitate to contact any one of the BRI management team.