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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 him pursuing 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.

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 Management Limited (Company No: 07130329) and Bridgewood Financial Solutions Limited (Company No: 06957765). Registered Office: Poynt South, Upper Parliament Street, Nottingham, NG1 6LF. Registered in England and Wales.

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Paul Mallatratt (Licence No. 2039) and Louise Freestone (Licence No. 2030) are licensed to act as insolvency practitioners in the UK by the Institute of Chartered Accountants in England and Wales and are subject to their Code of Ethics, available in English at www.icaew.com[...]code-of-ethics-d

In carrying out the regulated profession of Insolvency, the firm is subject to the Insolvency Regulations and Guidance Notes at www.icaew.com/insolvency and the Statements of Practice at www.icaew.com[...]insolvency-regulations-and-standards