The Insolvency Service has reported that a bankrupt who fraudulenty disposed of property has received a four-month prison sentence.
It was found that the individual was aware of his debt issues however he instructed a firm of solicitors to transfer his share in a property (estimated to have been worth £40,000) to his ex-partner. Following the completion of the transfer some two months later the individual sought advice regarding a debt management plan, but failed to disclose the d transfer of property.
Just over a year later the individual was adjudged bankrupt. Enquiries by the Official Receiver uncovered the transfer and the bankrupt admitted that his motive behind the transfer was his concern that his ex-partner would be forced to sell the property in the event of formal insolvency action.
This comes as a warning to individuals regarding the potential consequences of intentionally depriving creditors of their assets.
Further information can be found on the government website:
Posted 1:48 PM | Permalink