Press release

6 year restriction for bankrupt who disposed of assets to detriment of creditors

Vishali Sharma has given a bankruptcy restrictions’ undertaking for six years for disposing of assets to the detriment of her general body of creditors.


The ban follows an investigation by the Insolvency Service.

The undertaking, to the Secretary of State for Business, Innovation & Skills, means that Ms Sharma will be bound for 6 years from 24 February, by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months. In addition, she cannot manage or control a company during this period.

As a result of the undertaking to the Secretary of State for Business, Innovation and Skills, Ms Sharma is bound by restrictions set out in insolvency law until February 2021.

Ms Sharma (35) was declared bankrupt on a creditor’s petition presented at the County Court at Romford on 13 February 2014 and she was discharged from bankruptcy on 13 February 2015.

During the course of her investigations into the bankrupt’s affairs, the Official Receiver found that following a court hearing in June 2013 in which Ms Sharma’s application to set aside a statutory demand was dismissed, Ms Sharma sold her beneficial interest in a property to a family member. She then gave £25,000 to a connected third party to invest in foreign property at a time she knew or ought to have known that she was insolvent.

Commenting on the ban, Sarah Udall, Official Receiver, said:

The Insolvency Service always looks very closely at individuals who seek to divert funds away from their creditors and if discovered, will have restrictions imposed on them as Ms Sharma has discovered.

Notes to Editors

Ms Vishali Sharma is of Romford and her date of birth is 24 December 1979.

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
  • may not be a Member of Parliament in England or Wales

The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, 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.

Published 23 March 2015