Press release

Extended bankruptcy for London man who drew loans he knew he couldn't pay

On 7 June 2016, Simon Holmblad (29), unemployed of Islington, London, received an 8 year bankruptcy restriction order in the County Court of Central London.


The Order, which followed an investigation by the Insolvency Service, was as a result of him incurring credit via three loans totalling £40,000 (without interest or charges) in September 2014, which he had no reasonable expectation to repay.

Mr Holmblad is therefore bound by the restrictions set out in insolvency law that a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – until 2024. In addition, he cannot manage or control a company during this period without leave of court.

A bankruptcy order was made against Mr Holmblad on 15 April 2015 in the County Court of Central London following his petition for bankruptcy. Mr Holmblad’s total deficiency at bankruptcy was £64,389.75.

The court heard that Mr Holmblad traded as a self-employed courier from March 2012 to December 2014, in which during this time, Mr Holmblad had suffered from injuries which he claimed to impact his ability to work. However Mr Holmblad believed he had earning capabilities for £800 to £1,000 per week although this claim could not be corroborated by the official receiver.

Mr Holmblad obtained £40,000, in quick succession, from three loan providers during September 2014, 7 months prior to petitioning for his bankruptcy, at a time he was insolvent on a balance sheet and income and expenditure basis.

Mr Holmblad claims that £33,100 withdrawn in cash was used to pay an unauthorised lender and for gambling, with the remaining £6,900 being used to support general living and a holiday. However the official receiver has been unable to verify Mr Holmblad’s use of £33,100.

Commenting on the case, Andrew Stanley, the Official Receiver from Kent said:

Mr Holmblad took undue risk with creditor’s money, at a time he was insolvent and had no real expectation to repay. Mr Holmblad’s actions were to the detriment of his general body of creditors and the credit incurred materially contributed to his deficiency in bankruptcy. The Insolvency Service looks closely at individuals and takes action where wrongdoing is uncovered.

These proceedings should serve to protect the public from any future misconduct by restricting Mr Holmblad from obtaining further credit and act as a deterrent to others considering similar action.

Notes to editors

Simon Holmblad is of Islington, London and his date of birth is 16 May 1987.

The bankruptcy order was made against Mr Holmblad on 15 April 2015, following his own petition for bankruptcy on the same date.

County Court at Central London granted an 8 year bankruptcy restriction order on 7th July 2016. Mr Holmblad did not defend the proceedings against him.

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.

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

All public enquiries concerning the affairs of the company should be made to: The Official Receiver, Public Interest Unit, 2nd Floor, 3 Piccadilly Place, London Road, Manchester, M1 3BN. Tel: 0161 234 8531 Email:

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.

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Published 19 August 2016