Insolvency Service warns bankrupts not to hide assets

Published on 16 Jun 2010 under category: legal

The Insolvency Service is warning bankrupts that they must not attempt to hide any of their assets from creditors.

Following a surge in such activity, the group is reminding those struggling with debt that they face penalties if they do not declare all of their property holdings, savings and investments.

It said the number of bankrupts who have tried to conceal assets has risen to more than 200 this year. In the 2008-09 financial year, just 28 individuals attempted to put their assets out of reach of creditors.

Les Cramp, senior official receiver for the Insolvency Service, said penalties can include financial sanctions and custodial sentences.

Bankrupts can also see the period during which bankruptcy restrictions apply increased by up to 15 years, instead of the usual 12 months.

"It is for the Official Receiver to decide which assets should be sold for the benefit of the creditors and which may be retained by the debtor," Mr Cramp explained.

According to the latest Insolvency Service figures, individual insolvencies increased by 17.9 per cent in the first quarter of 2010 compared to the same period in 2009.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.