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66 month Bankruptcy Restriction Order imposed on Malcolm Scott

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Friday, 04 September 2015

Scotland’s insolvency service, Accountant in Bankruptcy (AiB) has secured a five and a half year Bankruptcy Restrictions Order (BRO) on a debtor due to his misconduct during the administration of his bankruptcy.

The BRO was imposed on Malcolm Scott of 14 Laurel Way, Bridge of Weir for serious misbehaviour during his bankruptcy.  Following an application by AiB, Sheriff Holligan made a BRO in respect of Mr Scott for a period of five and a half years at Edinburgh Sheriff Court.  Mr Scott was sequestrated in June 2012. An investigation by AiB established Mr Scott had:

•    Inaccurately reported items had been stolen from his home, some of which were sold at auction. Mr Scott failed to account for the proceeds of the sale to his trustee.

•    Failed to declare to his trustee he had transferred around £9,000 of shares, which could have been sold by his trustee to benefit Mr Scott’s creditors.

•    Failed to account for the proceeds of the sale of a Range Rover.

•    Failed to declare to his trustee a speedboat he owned called Breakwater. The boat was later sold by his trustee for just under £36,000.

•    Failed to declare to his trustee other assets he owned, including fishing rights, a wine collection and various assets/interests in the Bahamas, currently estimated to be valued at around £200,000.

•    Failed to provide information and respond timeously to his trustee.


Someone subject to a BRO has the same restrictions imposed on their financial activities as they had during their bankruptcy. They must disclose to potential credit providers they are subject to a BRO if they wish to obtain credit during the period of the BRO.

Richard Dennis, Chief Executive of Accountant in Bankruptcy, said:

"The Accountant in Bankruptcy will investigate and will take action against those who seek to subvert the bankruptcy process. 

“The sheriff has agreed with us that Mr Scott sought to subvert the process during his bankruptcy.

“These restrictions are necessary to alert potential future creditors and employers to the inappropriate behaviour we have identified.”

Background

Debtor details: Malcolm James Scott, date of birth 13 September 1963, stated address 14 Laurel Way, Bridge of Weir, PA11 3NH. Details of the case are recorded in the Register of Insolvencies which can be accessed by the public, free of charge.

The BRO was imposed for misconduct, as described under Section 56B of the Bankruptcy (Scotland) Act 1985, as amended:



(1) Gratuitous Alienation

(2) Failure to account
(3) Failure to co-operate with their trustee

A person made subject to Bankruptcy Restriction Orders must:

•    disclose their status to a credit provider that you are subject to bankruptcy restrictions if they, either alone or jointly with another person, wish to get credit of more than £500;
•    disclose their status to a credit provider if they wish to get credit of any amount and already have debts of £1,000 or more.

The bankrupt may not:

•    be nominated, elected or hold office as a member of a local authority, conform to section 31 of the Local Government (Scotland) Act 1973.

•    act as an Insolvency Practitioner or as the Receiver or Manager of the property of a company on behalf of debenture holders.

(Source - AiB Press Release)  

 

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