"Giving the right advice, first time, every time"


Trying to be too clever


5 August 2019: BRI Business Recovery and Insolvency’s Northampton office dealt with a very unusual bankruptcy estate whereby it took two years for the aggrieved creditor to successfully make the individual bankrupt. It was some effort by the creditor as, when served with the petition, the bankrupt even claimed he was not him and that individual had in fact died.

BRI were appointed by the creditor as Trustee in Bankruptcy and our investigations began. The bankrupt claimed to have no assets; however, following extensive investigations, it transpired that the bankrupt had significant assets in the form of 7 unencumbered properties which combined residential and commercial properties with a value of approximately £8million

Whilst we were only aware of the petition debt of circa £60K we, as required, notified HMRC, who advised that the bankrupt had never paid any tax whatsoever via earnings or significant property transactions spanning 20 years.

As you would imagine, this matter took some time to deal with but creditors received payment in full plus interest with the petitioning creditor and HMRC receiving some £1.1million. Given all creditors were paid, the bankrupt estate’s interest in properties, not needing to be realised, were relinquished.

The irony of this matter is that, when in receipt of the petition, the bankrupt did indeed have the ability in actual cash to pay the debt – the title of this post says it all.

At BRI we deal with all insolvency and solvency related matters, both corporate and personal. Please call any of the management team for free initial advice in complete confidence and with no obligation.