Bankrupt-opened new business next day???

peachyprice

But that wouldn't have any effect on the business still trading would it?

Also, many ltd companies have a clause whereby share have to be relinquished if a director resigns, which you would have to do if you are personally bankrupt.

OP really needs to establish whether it's a personal bankruptcy or a company liquidation.

JCS1

mrs_baggins wrote: »

How is it possible for somone who owes creditors hundreds of thousands of pounds to divert all there assets and money into their partners name so when the original business fails it just doesnt have any effect on them and their lifestyle carries on exactly as before leaving all the peple they owe money to seriously out of pocket.?

I guess that bancruptcy is just against one personand not his partner/wife but surely his bank accounts will be looked at to see where all the transfers of money have gone to.

I dont want to go into details but I foundout that someone who owed a friend lots of money did just this and I am sure it goes on all the time and probably nothing can be done about it butI said I would try to find out something.

If you have evidence of misconduct that could help the OR in their investigation, then you can contact them and pass the details over. if you search the register on the insolvency service website the OR details should be on there.

PixiePie

mrs_baggins wrote: »

... their lifestyle carries on exactly as before.....

Don't know about the ins and outs of the situation (IE this has nothing to do with your situation, other to point out that this thought from some people (IE not necessarily you) is what contributes to BR's having a hard time sometimes unfairly), but you would be surprised at how capable people are at outward appearances. No-one ever had any idea that myself and my partner were living well below the poverty line, being homeless and spending £20 a week on food on a good week and really struggling hard, but always meant that we had clean clothes that I mended to make them not look like baglady clothes etc. People were truely shocked when they found out the situation we were in.

maxmycardagain

it was a Ltd company owing me £14,000 that sent me BR

only banks and CCs suffered though, all my trade suppliers were paid, and the OR made no comment

philnicandamy

mrs_baggins wrote: »

doesnt have any effect on them and their lifestyle carries on exactly as before leaving all the peple they owe money to seriously out of pocket.?

One things for sure my life certainly didnt continue as "normal" after bankruptcy :mad:

maxmycardagain

the MD of the comapny who had me over was on his 4th Ltd liquidation, and has since bought a pub+eatery down in Cornwall

maxmycardagain

youve no idea what that call i slike..

"hiya, hey, isnt ***** one of your customers?"

yeah, why?

"do they owe you much?"

yeah why?

"just saw the bosses taking the computers and phone system out and loading thier company cars up with anything they can grab..."

rog2

mrs_baggins wrote: »

How is it possible for somone who owes creditors hundreds of thousands of pounds to divert all there assets and money into their partners name so when the original business fails it just doesnt have any effect on them and their lifestyle carries on exactly as before leaving all the peple they owe money to seriously out of pocket.?

This is just the kind of 'example' that gets the majority of 'bankrupts' a bad name, and usually leads to the spate of 'br bashing' that we have witnessed all too often on this board.

These people are 'professionals' who know exactly how to use, and abuse, the 'system'. They, as you imply, deliberately amass large amounts of money - often by taking cash deposits, from vulnerable members of the public, for products and services that they can not, or have no intention of so doing, supply. This 'cash' is often offset by false invoicing, making it appear that the 'company' is unable to meet its financial obligations, whilst the actual cash is 'salted away' often to, thus far, untouchable offshore accounts.

The 'assets' of the 'company', such as vehicles, tools and premises, are often 'leased' to the company - this may even be by the principle director of the 'company' who 'owns' all of the assets - making them untouchable in the event of the 'insolvency' of the 'company'. This may, also, have the added, though equally undesirable, effect of making the principle director one of the largest 'creditors' of the 'company', whereas his personal 'liability' to the Company could be as low as £100 (100 x £1 shares). If there is a dividend, he could even 'profit' out of the company's bankruptcy.

I think that most of us have come across this situation - indeed for many of us who ran businesses, prior to our own bankruptcy, such 'individuals' contributed in no small way to our own 'demise'.

I had one such customer who paid me a 30% deposit on a £40k machine - his company 'went under' just one week after installation - the company 'changed hands' four times in 48 hours after 'folding', creating an almost impossible to pursue legal and paper trail - I was not his biggest creditor and was, fortunately able to 'share' my loss with the manufacturer, but it did leave a nasty taste in my mouth and contributed greatly towards my own bankruptcy.

That 'company' is still trading, albeit under its fourth 'new name' and the 'General Manager' is the person who 'bought' the machine off of me - he has even had the cheek to phone me, on several occasions, asking for 'Service Visits', although he is not prepared to pay the £28k 'callout' charge that I have quoted.

So, Mrs B - yes it is 'going on all the time' and many of us 'big bad MSE bankrupts' have felt the sharp end of such 'practice'.

We do NOT condone that behaviour, and its proponents are NOT welcome here.

mrs_baggins

thanks all for the replies. the company concerned was not a ltd company but a sole trader. I think the scenario is probably more like somone suggested here as they dealt with lots of cash amounts and think they knew exactly what was going to happen and have been doing things behind the scene to divert money etc. i willl pass on these details to my friend and if they want to take it further they will or not as the case may be. thanks again