A BUSINESSMAN from Ayr has been dealt a seven year court order after concealing money and assets in a bankruptcy case.
Joseph Nelson, of Nelson Civil Engineering, has had strict financial limitations imposed on him until 2019 after the Scottish insolvency service, Accountant in Bankruptcy (AiB) imposed a Bankruptcy Restrictions Order (BRO) on him.
Mr. Nelson’s business ran into financial difficulties and he was declared bankrupt on May 26 2011.
However, despite the fact that he knew his bankruptcy was imminent, Mr. Nelson chose to sell off some financial assets, including six motor vehicles.
He did not provide any information or funds to his trustee and therefore his creditors were unable to receive money from these sales.
He carried these sales out knowing full well that he was outwith his legal right to do so.
Sheriff Montgomery at Ayr Sheriff Court concluded that Mr Nelson’s behaviour justified the seven year financial restrictions issued to him as he failed to fulfil basic obligations.
Mr. Nelson was also in possession of 6 bank accounts even though he only declared 2 of them and the level of his debt at the time of entering insolvency was around £1.2 million pounds.
He had also failed to keep his trustee informed of changes of address and financial circumstances during his bankruptcy, choosing instead to travel to the South of France and Spain where he was named as the sole director of a company and had property in his name, information that was also withheld from his trustee.
As a result of the BRO ordered against him, Mr. Nelson can not hold a post as a company director and his access to credit severely curtailed throughout the duration of the order.
AiB Chief Executive, Rosemary Winter-Scott said:
“Bankruptcy brings with it severe consequences and also important responsibilities for debtors – including the obligation to fully disclose details of assets and financial affairs to the trustee.
“Bankruptcy Restrictions Orders and Undertakings are central to protecting not only the bankruptcy process, but the people and organisations owed money who suffer financially from irresponsible or unscrupulous behaviour.
“They also alert potential future creditors and employers that an individual has demonstrated inappropriate behaviour before or during their bankruptcy and may therefore be unsuitable for future credit or certain types of employment.”