Press release

Nine year bankruptcy restrictions for Warwick woman who failed to disclose inherited assets

Teresa Jane Bandy, a bankrupt, has given a 9-year Bankruptcy Restrictions Undertaking for failing to disclose assets to the Official Receiver, as required to by law.


The ban follows an investigation by the Insolvency Service.

The undertaking given on 29 June 2015, to the Secretary of State for Business, Innovation & Skills, means that Miss Bandy will be bound for 9 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 June 2024. In addition, she cannot manage or control a company during this period.

Miss Bandy (50) was declared bankrupt on her own petition at Warwick on 5 August 2013 and was discharged from bankruptcy on 5 August 2014.

In October 2014, it came to the attention of the Official Receiver that Miss Bandy had failed to disclose assets held at the time she presented her bankruptcy petition.

During the course of his subsequent investigations, the Official Receiver found that Miss Bandy had received an inheritance of £25,390 four months before she petitioned for her own bankruptcy - in April 2013 - of which she had spent £13,300 whilst not repaying her creditors.

On 5 August 2013, Miss Bandy filed her own bankruptcy petition with liabilities of £16,328 but failed to disclose that she still held £12,090 of the inheritance money, in bank accounts.

On 14 May 2014, whilst subject to a bankruptcy order, Miss Bandy received a further £1,662 which she also failed to disclose to the Official Receiver.

By failing to disclose these assets and subsequently spending the money, the Official Receiver was unable to collect the funds for the benefit of the bankruptcy estate and Miss Bandy’s creditors remain unpaid.
As a result of documentation given to Miss Bandy and which she acknowledged receipt of, following her bankruptcy, she ought to have known that she had a duty to reveal these assets to her trustee, the Official Receiver.

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 disregard their duties and responsibilities whilst bankrupt and takes action where wrongdoing is uncovered.

Notes to Editors

Miss Teresa Bandy is of Warwick and her date of birth is 26 April 1965.

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 9 July 2015