Press release

10 year restriction for bankrupt who failed to pay HMRC with his only asset and then failed to pay the Official Receiver

A bankruptcy restriction order has been made against Christopher John Day of Northampton for 10 years as a result of his conduct.


At a hearing on 13 September 2016, a bankruptcy restriction order was made against Christopher John Day of Northampton for 10 years as a result of his conduct, lasting until 12 September 2026.

Mr Day was declared bankrupt on 17 June 2015 on a petition presented against him by Her Majesty’s Revenue & Customs (HMRC).

An Insolvency Service investigation found Mr Day withdrew his entire pension, of more than £30,000, after bankruptcy proceedings had been started against him by HMRC. The petition against Mr Day having been presented on 27 April 2015.

By the time he attended an interview with the Official Receiver’s Office in July 2015, Mr Day said he had £10,500 remaining, and that this was being ‘looked after’ by a family member. He was told he needed to pay the money to the Official Receiver.

He didn’t pay the money over, and instead instructed his family member to keep hold of the money on his behalf. After court proceedings, only £4,500 was recovered.

Martyn Rawbone, Deputy Official Receiver, said “This is a serious case in which the bankrupt’s misconduct continued even after he had been made aware of his obligations. Extending the period of the bankruptcy restrictions should act as a deterrent and warning to others who might be considering such actions.”

Notes to editors

Christopher John Day is of Northampton and his date of birth is 25 December 1954.

If the Official Receiver considers that the conduct of a bankrupt has been dishonest or blameworthy in some other way, he (or she) will report the facts to court and ask for a Bankruptcy Restrictions Order (BRO) to be made. The court will consider this report and any other evidence put before it, and will decide whether it should make a BRO. If it does, the bankrupt will be subject to certain restrictions for the period stated in the order. This can be from 2 to 15 years.

The bankrupt may instead agree to a Bankruptcy Restrictions Undertaking (BRU) which has the same effect as an order, but will mean that the matter does not go to court.

These are restrictions set out in insolvency law that the bankrupt is subject to until they are discharged from bankruptcy – normally 12 months and include that bankrupts:

  • must disclose their status to a credit provider if they wish to get credit of more than £500
  • who carry on business in a different name from the name in which they were made bankrupt, they must disclose to those they wish to do business with the name (or trading style) under which they were made bankrupt
  • may not act as the director of a company nor take part in its promotion, formation or management unless they have a court’s permission to do so
  • may not act as an insolvency practitioner, or as the receiver or manager of the property of a company on behalf of debenture holders
  • additionally, a person subject to a Bankruptcy Restrictions Order/Undertaking or a Debt Relief Restrictions Order/Undertaking may not be a Member of Parliament in England or Wales

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

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Published 17 November 2016