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The maximum Bankruptcy Restriction Order is handed out
District Judge Meredith in the Torquay and Newton Abbot County Court has handed out the maximum Bankruptcy Restriction Order of 15 years to a self employed builder. The bankrupt in this case Brian Kerr, had been declared bankrupt in 2009 but the Official Receiver successfully obtained the maximum 15 years restriction on 19 March 2010.
On making the order District Judge Meredith stated this was a bad a case as could be envisaged, labelling Mr Kerr as a man who could not be trusted at all to honestly deal with the public.
Under the terms of the Bankruptcy Restriction Order Mr Kerr is prohibited with being directly or indirectly involved in the management of limited company without the permission of the court. He must disclose his bankruptcy restriction when applying for credit of more than £500 and the name of which he was made bankrupt when seeking to do any business in a different name or trading name.
It was proved to the satisfaction of the court the following:
• Between November 2006 and July 2007, Mr Kerr failed to supply agreed building services to customers, either at all or to a reasonable standard.
• Mr Kerr used 13 different trading names and at least 5 different trading names including hijacking the good name of a locally reputable builder.
• For the period 1 April 2004 to 27 January 2000, Mr Kerr had neglected his business affairs in not keeping a single record of his trading leading to an income tax assessment of £230,000.
Comment
Although clearly a shocking case of defrauding the public it is difficult to see how the public are protected from this individual. Mr Kerr can still incur liabilities in his own name and still trade as a builder.
This case also highlights the disparity between the Bankruptcy Restriction Order regime and the Directors Disqualification Regime which the Bankruptcy Restriction Order regime is supposed to mirror. We are of the opinion that Bankruptcy Restriction Order proceedings are not always defended which is not the case of directors' disqualification proceedings. It is difficult to see that in directors' disqualification proceedings the disqualification would have been over 10 years. The case law points to only multi million pound frauds being in the very top bracket.
For further information please call our Insolvency team on Exeter 01392 210700
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