Freephone (including all mobiles) 0800 987 1040

Case Study: Mr S - Trustee in Bankruptcy

Bankruptcy investigation recovers significant funds to the estate

Overview

Mr S was declared bankrupt on the petition of HMRC; according to his Statement of Affairs, he owned no assets and lived in a caravan.

Following Bridgewood's appointment as trustee in bankruptcy in place of the Official Receiver, an investigation was carried out into the circumstances leading up to the bankruptcy, in particular to establish the reasons why the bankrupt declared he had no assets when until recently he had jointly owned a substantial property with his wife.

Solution Provided

Bridgewood's highly skilled and experienced team of investigators established that the bankrupt had sold a jointly owned family home and allowed his wife to use almost all the proceeds to buy a new house in her sole name after HMRC began pursuing him for a six-figure debt. He denied living at the property or having any interest in it, supposedly living in a caravan many miles away. Investigations established he was registered at the property for council tax and parked his vehicle at the property. Further investigations into his affairs showed that he had also gifted half of an inherited property to his brother shortly before the bankruptcy.

Outcomes

The bankrupt, his wife, and brother refused to co-operate in the investigation and Court action was instigated. At the hearing the Court found in favour of Bridgewood resulting the bankrupt's wife being required to sell the property and pay the bankruptcy estate £75,000 and the bankrupt's brother over £90,000, for the benefit of the bankruptcy estate.

Paul Mallatratt

Our talented team of investigators put together clear evidence of assets being put beyond the reach of creditors which allowed the Court to find in Bridgewood's favour and recover substantial funds for the benefit of creditors.

Paul Mallatratt, Insolvency Practitioner

Bridgewood is a trading style of Bridgewood Financial Solutions Limited (Company No: 06957765). Registered Office: Poynt South, Upper Parliament Street, Nottingham, NG1 6LF. Registered in England and Wales.

Calls are recorded for training and security purposes.

Thomas Grummitt and Andrew Smith are licensed to act as Insolvency Practitioners in the UK by the Insolvency Practitioners Association. In carrying out all work related to an insolvency appointment, insolvency practitioners are bound by the insolvency code of ethics and are subject to the regulations and guidance of their authorising body. Details of the code of ethics, statements of insolvency practice and other regulations and guidance issued by the Insolvency Practitioners Association can be found here: