News Article

Legislation & Litigation

Nine year bankruptcy restrictions for Warwick man who failed to disclose assets

By CreditMan Friday, February 20, 2015

Richard Michael Clarke (56) has given a bankruptcy restrictions undertaking for nine years 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 8 December 2014, to the Secretary of State for Business, Innovation & Skills, means that Mr Clarke 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 2022. In addition, he cannot manage or control a company during this period without leave of the court.

Mr Clarke was declared bankrupt on his own petition at Warwick on 29 February 2012 and he was discharged from bankruptcy on 28 February 2013.

As a result of the undertaking to the Secretary of State for Business, Innovation and Skills, Mr Clarke is bound by restrictions set out in insolvency law until December 2023.

In August 2014, it came to the attention of the Official Receiver that Mr Clarke had failed to disclose various assets held at the time he presented his bankruptcy petition.

During the course of his subsequent investigations, the Official Receiver found that at the time of his bankruptcy, Mr Clarke had failed to disclose equity in a property valued at £53,891 and various investments valued at £23,600. Furthermore, Mr Clarke had received £27,784 for these investments, made a £10,000 lump sum mortgage repayment and had given £16,050 to an associate for no consideration.

As a result of documentation given to Mr Clarke, and which he would acknowledged receipt of, following his bankruptcy, he ought to have known that he had a duty to reveal these assets to his 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.