Lee John Palmer (41), a plumber from Knapton, was declared bankrupt on 28 January 2021 before the Official Receiver was appointed as Trustee.
While reviewing Lee Palmer’s assets, the Official Receiver uncovered that Lee Palmer had bought a van on hire purchase but sold the vehicle without the permission of the hire purchase finance company.
The hire purchase meant the van wasn’t his property to sell and the finance company suffered a loss of over £16,000.
The Official Receiver sought to extend Lee Palmer’s bankruptcy restrictions further because of the risk he posed to creditors.
Lee Palmer’s bankruptcy undertaking extends his restrictions for 6 years. This means he is limited to what credit he can access and cannot act as a company director without the permission of the court.
Kevin Read, the Official Receiver, said:
It is illegal to sell a vehicle with an outstanding finance agreement. Not only does the finance company lose out but the new owner could unknowingly be at risk of having their vehicle repossessed and losing money.
Lee Palmer’s actions posed a risk to creditors and his 6-year ban should act as a deterrent to others considering abusing their creditors.
Bankruptcy restrictions are wide ranging. The effects are the same whether you are subject to a bankruptcy restrictions order or to an undertaking.