Birmingham man gets 10 year Bankruptcy restrictions for disposing of money that could have gone to his creditors
Perdeep Kumar Bhatti (42) of Birmingham, gave a ten year Bankruptcy Restrictions Undertaking on 26 February 2015 for disposing of assets to the disadvantage of his creditors.
Mr Bhatti’s restriction follows an investigation by the Insolvency Service.
Mr Bhatti has given an undertaking to the Secretary of State for Business, Innovation & Skills, to be bound for 10 years, by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – until February 2025. In addition, he cannot manage or control a company during this period without leave of the court.
Mr Bhatti was declared bankrupt on a bankruptcy petition presented to the County Court at Birmingham on 20 March 2014 by Her Majesty’s Revenue & Customs and was discharged from bankruptcy on 20 March 2015.
During the course of his investigations, the Official Receiver found that Mr Bhatti disposed of £205,981 - including gambling losses of £25,366 - to the detriment of his creditors who were owed £574,282 at the date of the bankruptcy order.
In addition, Mr Bhatti obtained £140,000 from a third party but failed to protect or repay the money as agreed.
Commenting on the case, Gerard O’Hare of the Insolvency Service’s Official Receiver’s office said:
The Insolvency Service always looks very closely at individuals who demonstrate a disregard for creditors and takes action where wrongdoing is uncovered.
Notes to Editors
Perdeep Kumar Bhatti is of Birmingham and his date of birth is 17 December 1973.
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: 26 March 2015
From: The Insolvency Service