New Prudential Framework Provides Leeway To Lenders And Encourages Them To Refer Cases To Insolvency and Bankruptcy Court
Bankruptcy restrictions imposed on an Indian-origin man in central England over financial misconduct has been extended for 10 years after it emerged that he had concealed an asset from the state.
Sukhwinderjit Singh Sanghera, also known as Sukhi Sanghera, from Leamington Spa town was declared bankrupt in August 2017 by an order of the County Court in Warwick, with debts of over 140,000 pounds.
He had his affairs passed into the control of the Official Receiver for the UK's Insolvency Service and he was obliged to disclose all his assets to officials, including property. However, he failed to mention that he was the sole owner of a rental property in Coventry that generated a monthly income of 1,900 pounds.
"Sukhi Sanghera not only concealed a significant asset from the Official Receiver but also concealed its value from his creditors. He was completely prepared to leave them out of pocket, said Kevin Read, Official Receiver for the Insolvency Service.
The 10-year extended bankruptcy restrictions we have secured reflect the severity of his actions and should serve as a warning to others to comply fully and openly with the bankruptcy process, he said.
Following investigations by the Official Receiver, the property was subsequently registered as an asset in Sanghera's estate and then sold, raising more than 70,000 pounds towards the bankruptcy order.
Bankruptcy restrictions are usually lifted after a year but in this case the UK government imposed a 10-year undertaking from Sanghera after he did not dispute that he failed to disclose the property to the Official Receiver.
Due to the restrictions, the 50-year-old would be unable to borrow more than 500 pounds without telling a lender he is bankrupt, he cannot act as a director of a company without the court's permission and he is banned from being an elected councillor in his local district.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)