UK Bankruptcy and Statement of Affairs

[mickeyg]

I have a question regarding UK bankruptcy. Person A is owed a substantial sum of money by Person B. Person B has established a COMI in the UK and has applied for bankruptcy there which will result in B's debts being written off (including that owed to A) in a year's time.
However the Statement of Affairs as issued by B's solicitors in support of the bankruptcy is riddled with errors - deliberate omission of assets, undervaluing of assets etc. in order to paint a bleaker picture than is reality. My question is what is the process for challenging the veracity of the Statement of Affairs and how seriously is this taken by the UK authorities - can the bankruptcy request be nullified as a result of the untruths?

Thanks

 

[Steve Thatcher]

I have a question regarding UK bankruptcy. Person A is owed a substantial sum of money by Person B. Person B has established a COMI in the UK and has applied for bankruptcy there which will result in B's debts being written off (including that owed to A) in a year's time.
However the Statement of Affairs as issued by B's solicitors in support of the bankruptcy is riddled with errors - deliberate omission of assets, undervaluing of assets etc. in order to paint a bleaker picture than is reality. My question is what is the process for challenging the veracity of the Statement of Affairs and how seriously is this taken by the UK authorities - can the bankruptcy request be nullified as a result of the untruths?

Thanks

Hello Mickey, I thi nk I can answer these.
As a creditor A can provide any information he wants to the Official Receiver. The OR will use that information to investigate the affairs and conduct of the bankrupt. It might be the case that the OR does actually seek an annulment of the bankruptcy, but his main focus would be collecting assets in.
The Judge in the Quinn case made reference to the fact that the bankruptcy process is carried out ex parte, ie without notice to other interested parties and so the papers should contain everything that the court might want to consider.

Steve Thatcher

[broken link removed]

 

[mickeyg]

Hello Mickey, I thi nk I can answer these.
As a creditor A can provide any information he wants to the Official Receiver. The OR will use that information to investigate the affairs and conduct of the bankrupt. It might be the case that the OR does actually seek an annulment of the bankruptcy, but his main focus would be collecting assets in.
The Judge in the Quinn case made reference to the fact that the bankruptcy process is carried out ex parte, ie without notice to other interested parties and so the papers should contain everything that the court might want to consider.

Steve Thatcher

[broken link removed]

Steve, I dont know if you are still on here - I havent been here in quite some time. Following on from the above situation the bankrupt has been
discharged but without anything like full disclosure of assets. Presumably, disclosing to the OR, assets which the bankrupt has and which were not included in his Statement of Affairs will go into the "pot" rather than to the creditor who brings this to the attention of the OR?
Is this taken seriously (less than full disclosure) by the UK Courts which in effect amounts to perjury??

 

[Steve Thatcher]

Steve, I dont know if you are still on here - I havent been here in quite some time. Following on from the above situation the bankrupt has been
discharged but without anything like full disclosure of assets. Presumably, disclosing to the OR, assets which the bankrupt has and which were not included in his Statement of Affairs will go into the "pot" rather than to the creditor who brings this to the attention of the OR?
Is this taken seriously (less than full disclosure) by the UK Courts which in effect amounts to perjury??

Hi Mickey, the assets if ever recovered, would go into the pot. The first call on these would be fees!!
If there is non disclosure and a discharge, I think it is still open for an OR to bring an action for recovery of sums not disclosed. It could also potentially lead to imprisonment. It is not action that is taken very often at all.